Idaho State Tax Commission

Farming and Ranching: Production Exemption

Taxable items – farming and ranching

Even if you qualify for the production exemption, some items are taxable. Also, the following commonly-used items are taxable to farmers or ranchers:

Feed, supplies, and vaccines for:

  • Household pets
  • Livestock used for personal use or consumption
  • 4H or FFA projects

Examples:

  • You use your dog occasionally to herd livestock, and your cat controls mice in the barn. Your cat and dog are considered pets. You must pay tax on all supplies you buy for their care and maintenance. Note: If your dog's only purpose is to herd or protect your livestock, you can buy its food and supplies exempt.
  • You're a rancher and own several horses. You use the horses for recreation and occasionally use them to round up cattle. You must pay tax on all feed and vaccines for the horses. Note: If you use your horse more than 50% of the time for herding cattle, its feed and vaccines are exempt.
  • You raise a pig to provide food for your own use. The farming exemption is only for goods you'll sell. Feed and vaccines bought for the pig are taxable.
Seed or plants

If used for planting a personal or family garden

Real property improvement materials

Examples:

  • Concrete, rebar
  • Light fixtures (indoor or outdoor)
  • Shingles, barn lumber, granaries
  • Gates, fence posts, wire
Farm produce beds

If permanently attached to licensed vehicles

Aircraft and supplies

Used in any activity

Equipment and supplies used to maintain roads

Including:

  • Road graders
  • Bulldozers
Trailers or vehicles

That require licensing for use on public roads

Shop equipment and supplies

Used to make repairs

Examples:

  • Hand tools
  • Power tools and compressors, including their accessories
  • Welders and cutting torches, including the gas you use to operate them
  • Solvents, cleaners, degreasers, shop rags
  • Paint, even if used for production equipment
Office, maintenance, or janitorial

Equipment and supplies

Marketing, promotional, sales, or distribution

Equipment and supplies

Equipment and supplies to analyze or model financial results

Page last updated May 22, 2018. Last full review of page: May 22, 2018.

This information is for general guidance only. Tax laws are complex and change regularly. We can't cover every circumstance in our guides. This guidance may not apply to your situation. Please contact us with any questions. We work to provide current and accurate information. But some information could have technical inaccuracies or typographical errors. If there's a conflict between current tax law and this information, current tax law will govern.