Wisconsin Administrative Code › Department of Revenue › Chapter Tax 11 - Sales And Use Tax › Subchapter III - Exemptions › Section Tax 11.12 - Farming, including dairy farming, agriculture, horticulture, floriculture, silviculture, and custom farming services

Current through June 24, 2024
(1) STATUTES.
				Section
				77.54(3) and
				(3m), Stats., provides exemptions for certain
				sales of tangible personal property, or items or property under s.
				77.52(1) (b) or
				(c), Stats., to persons who are engaged in
				farming as a business enterprise, including dairy farming, agriculture,
				horticulture, floriculture, silviculture, beekeeping, and custom farming
				services.
(2) DEFINITIONS. In this
				section and s.
				77.54(3), (3m), (30) (a)
				3 and 5., and (33), Stats.:
(a) "Animal bedding" used in farming means
				disposable loose materials, including straw, shavings, sawdust, leaves, sand,
				and shredded paper, used where an animal may lie, to promote cleanliness and
				absorb urine or liquid manure. It does not include nonabsorbent items,
				including rubber floor mats.
(am)
				"Beekeeping" has the meaning given in s.
				77.51(1bm),
				Stats.
(b) "Custom farming
				services" means the performance of an activity, defined as farming in this
				section, for a farmer for a fee. The fee may include a cash payment, a share of
				the harvest or other valuable consideration. "Custom farming services" also
				includes services performed by a veterinarian to animals that are farm
				livestock or farm work stock used exclusively in the business of
				farming.
(c) "Dairy farming" means
				the business of feeding and raising cattle and other milk producing animals,
				but does not include operations such as pasteurizing, homogenizing, or making
				butter, cheese, or ice cream.
(d)
				"Farm livestock drugs" means any substance or preparation used in the
				diagnosis, cure, mitigation, treatment, or prevention of disease in farm
				livestock. This includes antibiotics, dewormers, mastitis treatments, medicated
				shampoos and vaccines in the form of boluses, capsules, feed additives, fluids,
				pills, powders, ointments, and salves. This also includes disinfectants, flea
				powder and flea sprays, mastitis indicators, teat dips, udder wash, and
				vitamins. "Farm livestock drug" does not include drugs for work stock, horses
				used in racing, pleasure riding, or show, or small domestic animals, including
				dogs and cats. It also does not include laboratory equipment used by a
				veterinarian, non-medicated shampoos, non-medicated pet foods, and
				non-medicated bandages, or plaster of paris that is used to set an animal's
				broken bone.
(e) "Farm work stock"
				means animals, such as draft horses and mules, which are used exclusively in
				farming. The phrase includes horses used exclusively in farming to check on or
				herd livestock. The phrase does not include dogs, horses used for racing,
				pleasure riding or show or laboratory animals. The food for animals which are
				not farm work stock is taxable unless the animals are livestock as defined in
				par. (j).
Example: Dog and cat food is taxable.
(f) "Farming" means the business of producing
				food products or other useful crops by tilling and cultivating the soil or by
				raising cattle, sheep, llamas, poultry, domesticated rabbits, or other animals
				which produce a food product or which are themselves a food product. In
				addition, consistent with chs. 29 and 94, Stats., "farming" includes raising
				earthworms, pheasants, foxes, fitch, nutria, marten, fisher, mink, chinchilla,
				rabbit, caracul, and bees; producing honey products by a beekeeper; commercial
				raising of fish for food; commercial breeding and raising of horses and llamas
				for sale; and raising ginseng, mushrooms, and sod. "Farming" does not include
				home gardening and other similar noncommercial activities; breeding or raising
				dogs, cats, other pets or animals intended for use in laboratories; operating
				sporting or recreational facilities, such as riding stables or shooting
				preserves; operating stockyards, slaughterhouses, or feed lots as described in
				par. (g); pulpwood and sawmill operations; milling and grinding grain; and
				preparing sausage, canned goods, jellies, juices, or syrup.
Example: Dog and cat food is taxable.
(g) "Feed lot" means a restricted area
				containing pens or lots where livestock are held and fed. A person who holds
				livestock in a feed lot for less than 30 days is not engaged in farming. Feed
				purchased for livestock held in a feed lot for less than 30 days is taxable.
				However, a person who holds livestock in a feed lot for 30 days or more is
				engaged in farming and the feed purchased for the livestock is exempt. If a
				person holds some livestock for less than 30 days and some livestock for 30
				days or more and purchases feed for both types at the same time, an allocation
				of the feed costs may be made so that tax is paid on the feed consumed by
				livestock held for less than 30 days and is not paid on feed consumed by
				livestock held for 30 days or more.
(h) "Floriculture" means the business of
				producing flowers, Christmas trees or other decorative trees, plants, or
				shrubs, including such operations as greenhouses.
(i) "Horticulture" means the business of
				producing vegetables, vegetable plants, fruits, and nursery stock, including
				the operation of commercial nurseries and orchards but not businesses which
				hold stock for purposes other than propagation or growth. "Horticulture" does
				not include the business of servicing plants owned by others; the raising of
				trees as timber; or lumber or sawmill operations.
(j) "Livestock" and "poultry" include
				animals, the products of which are normally used as food for human consumption,
				and domestically raised fur bearing animals or animals which are a source of
				wool, such as llamas, including those purchased for breeding.
(k)
1.
				"Silviculture" means the business of raising trees for timber, lumber, or other
				wood products. Silviculture includes the logging of timber when it is performed
				by a person engaged in the business of silviculture and the logging is
				conducted with respect to that person's silviculture activity. Silviculture
				does not include pulp or sawmill operations.
2. "Logging" as used in subd. 1. includes the
				following activities which occur while in the field:
a. The felling of trees.
b. The delimbing of trees.
c. The cutting of trees into logs, poles, or
				other units.
d. The transportation
				of cut timber to a sawmill.
e.
				Activities conducted in the forest incidental to the felling, cutting, and
				removal of trees from the forest such as the clearing of the forest to allow
				access to and removal of the timber from the forest land.