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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department Of Taxation
Chapter 210. Retail Sales and Use Tax
2/25/2021

23VAC10-210-50. Agriculture.

A. Generally. The tax does not apply to commercial feeds, seed, plants, fertilizers, liming materials, breeding and other livestock, semen, breeding fees, baby chicks, turkey poults, agricultural chemicals, fuel for drying or curing crops, baler twine, containers for fruits or vegetables, farm machinery and agricultural supplies sold to farmers for use in agricultural production for market. Also, effective July 1, 1979, the tax does not apply to tangible personal property, except structural construction materials, necessary for use in agricultural production for market when sold to or purchased by a farmer or contractor or furnished to a contractor by a farmer to be affixed to real property owned or leased by a farmer. A purchase for personal or family use or consumption is not exempt. Exempt items must be purchased under a certificate of exemption. A farmer not engaged in the business of producing agricultural products for market cannot claim any agricultural exemptions.

The term "structural construction materials" includes but is not limited to the following: silos; barns and sheds; storage bins (not portable); greenhouses, including plastic covered houses; permanent fencing; fuel oil storage tanks; electrical wiring, except for wiring running from special purpose equipment to an on-off switch; plumbing, except as part of special purpose equipment (e.g., water feeding system in poultry house); cattleguards; farrowing houses; and bulk tobacco curing barns. These items are therefore subject to tax.

The term "structural construction materials" specifically excludes the following but may also exclude other items: milking systems; feeding systems; heating systems; artificial insemination equipment; lighting fixtures in poultry houses used for the purpose of extending the daily feeding period of chickens; power outage and water pressure alarm systems; egg cooling equipment, including wall mounted egg coolers; ventilating equipment, to include air inlets, curtains and curtain cables, cords and related fixtures, pull-ups, winches, fans and fan belts, louvers, shutters, motors, static pressure gauges, thermostats and replacement parts; shade cloth; and irrigation lines and sprinkler heads. These items are therefore exempt from tax.

B. Farmer-horse breeder. The production for sale of colts on a horse farm is regarded as "agricultural production." Horses used exclusively for the purpose of breeding colts for sale and the feed and supplies for such horses can be purchased tax exempt by the farmer-horse breeder.

Horses purchased for racing or showing are subject to the tax since they are not used exclusively for breeding purposes. The tax must also be paid on feed and supplies for such horses.

C. Commercial tree farming. The production of trees for sale or resale is regarded as "agricultural production," so any person engaged in commercial tree farming is entitled to the agricultural exemption. A person qualifying as a commercial tree farmer must act as any other farmer producing an agricultural product for market and must prepare the land for sowing, plant the seedlings, mulch the seedlings, nurture the trees, and harvest the trees at maturity for future use in commercial operations of producing a product for sale or resale.

D. Commercial fish farming. The raising of fish for sale or resale is regarded as "agricultural production," so any person engaged in commercial fish farming is entitled to the agricultural exemption. The exemption is allowed for purchases of commercial feed, fish eggs, and other agricultural supplies.

E. Commercial worm farming. Effective July 1, 1979, the raising of worms for sale or resale is regarded as "agricultural production," so any person engaged in commercial worm farming is entitled to the agricultural exemption. The exemption is allowed for purchases of worm feed, feed supplements, growing medium and other agricultural supplies.

F. Retail sales by farmers. A farmer regularly engaged in selling tangible personal property at retail must register as a dealer and collect and pay the tax due on retail sales.

The tax applies to regular or recurring sales of farm products by farmers or peddlers or at a public market, roadside stand, farm or any other place.

Statutory Authority

§§ 58.1-203 and 58.1-609.2(1),(3) of the Code of Virginia.

Historical Notes

Derived from VR630-10-4, eff. January 1, 1985.

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