Rhode Island Commercial Farming Exemptions, June 2014
- May 15, 2014 | Gail Cole
Many items related to commercial farming will be exempt from Rhode Island sales tax, effective June 1, 2014.
Exempt farm equipment and farm structure construction materials:
- Farm equipment used in connection with commercial farming and agricultural production;
- Farm equipment or machinery used for ancillary uses or temporarily used for non-farming or non-agricultural purposes, provided ancillary or non-agricultural use is less than 50% of the total use of the equipment or machinery; and
- Farm structure construction materials used in connection with commercial farming and agricultural production
Taxpayers must apply to the tax administrator to take advantage of the above exemption.
Exempt feeds, fertilizer, cattle bedding, chicken litter:
- Feed for livestock and poultry, fertilizer (including limestone), seeds and plants, insecticides and fungicides, seed inoculants and plant hormones, cattle bedding, chicken litter, and other supplies when used in commercial farming; and
- Horse feed products, provided they are purchased by a person engaged in the business of boarding 5 or more horses.
Exempt livestock and poultry:
- Livestock and poultry raised as food for human consumption and livestock raised for fibers for human use, provided these animals are used in commercial farming; and
- Horses used in commercial farming to plough fields, etc, where such use is in accordance with the ancillary use percentage in rule 6(A)(2). Horses not used in commercial farming are subject to sales and use tax.
The exemptions above are further explained in Rhode Island Division of Taxation Sales Tax Regulation 14-153.
How do you manage sales tax exemptions?