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NY Dog Breeder Must Pay Sales Tax on Dog Food

  • Jun 6, 2013 | Gail Cole

 The Monks of New Skete raise German Shepherd puppies at their monastery.

Is a commercial dog breeder engaged in farming? Snoopy was born at the Daisy Hill Puppy Farm, which sounds like a farm. On the other hand, in upper New York State, the Monks of New Skete breed German Shepherd dogs at their monastery.

The classification of commercial dog breeders may not matter to the folks purchasing dogs, but it has real fiscal consequences for the dog breeders of New York State. The NY Department of Taxation and Finance recently released an advisory opinion on the subject, in response to a petitioner wishing to know if the dog food fed to his breeding dogs qualified for an exemption from sales tax.

The department reminds that under New York Tax Law Section 1105-B, certain food and drinks are exempt from sales tax. These include food and drink sold to students at restaurants and cafeterias located in schools, and food and drink sold to airlines for consumption during flights. Furthermore, under New York Tax Law Section 1115(a)(6)(A), “Tangible personal property… for use or consumption predominantly either in the production for sale of tangible personal property by farming or in a commercial horse boarding operation, or in both…” is also exempt from sales tax.

However, the department determined that “the breeding or raising of animals is not encompassed” in the “types of production activities that qualify for the exemption.”

Manually tracking the thousands of sales tax rates and exemptions is arduous. Automation makes it easy.

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photo credit: jn2race via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.