“It is the opinion of” the tax commission, “that farmers raising crops or animals for market qualify for the sales tax exemption,” according to the statement. However, “Individuals that are raising crops or animals for their consumption are not qualified as farmers for the purposes of these exemptions,” according to the tax commission statement.
The tax commission issued the statement after receiving questions about the issue.
Those questions pertained to regulations involving the legal definition of “sale at retail,” which states that description does not include “feed, seed, and fertilizer, to be utilized in preparing, finishing, manufacturing, or producing crops or animals for market,” for sale as raw agricultural commodities.
Mike Veillon, commission administrator, said the position statement will soon be published as a legal notice in The Gazette. That statement will include reporting requirements for “farmers who want to purchase certain items for the farm operation to be exempt from local sales taxes.”
In other tax commission business, a report of funds available indicated $267,628.97 was available in the operation, distribution and savings accounts and in the certificate of deposit.