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.
Real property improvement materials
Examples:
- Concrete, rebar
- Light fixtures (indoor or outdoor)
- Shingles, barn lumber, granaries
- Gates, fence posts, wire
- Materials to construct large grain bins and silos
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