Bulletin #2
Taxpayers' Assistance Division
Commercial Agriculture
This Bulletin is obsoleted by AN 94-5
"Agriculture" is the business of operating for gain or profit, a farm and includes but is not limited to stock, dairy, poultry, fish, fur, nursery, florist, tobacco, orchards and truck farms.
"Agricultural Production Process" shall mean any one of a series of production activities beginning with the first operation in the production of farm products for sale such as in the preparation of the soil for planting, the insemination of livestock to produce dairy, meat or fur animals and ends with the harvesting and packaging operation for the ultimate consumer. In this instance, the ultimate consumer means the customer to whom the farmer sells his product.
Three sections of the Connecticut Sales and Use Tax Statutes provides exemptions for those engaged in commercial agriculture: These section are: 12-412 (12) exempts livestock, rabbits and poultry; feed; seeds and tree seedlings; fertilizers; plants; equines. 12-412 (18) exempts materials, tools and fuel used directly in the agricultural production process and 12-412 (34) which exempts machinery used directly in the agricultural production process.
The following is a listing of various equipment, machinery, tools and materials generally used in agriculture. Each item has been designated as taxable or non-taxable, if used directly in the agricultural production process. We have endeavored to make the list as complete as possible, but realize that many items may not be included. If questions arise as to the taxability of items omitted, may we suggest the questions be funneled through either the Connecticut Farm Bureau or the Extension Service. If you are not affiliated with either organization, questions may be forwarded to this office.
Legend: T = Taxable, E = Exempt, T 5% = Taxable at the 5% rate.
| Tillage Equipment | |
| Plows - Mould Board & Disc Type | E |
| Harrows - Dick & Spike Teeth | E |
| Cultivators - Pull Type or Tractor | E |
| Tillage Tool Bars | E |
| Bed Digger | E |
| York Rake (Landscaping) | E |
| Rototillers | E |
| Seeding Equipment | |
| Seeders | E |
| Grain Drills | E |
| Potato Planters | E |
| Transplanters | E |
| Corn Planters | E |
| Lawn Seeder (Nursery-Sod Farm) | E |
| Lawn Rollers (Nursery-Sod Farm) | E |
| Fertilizers Preportioners | E |
| Soil Mixing Machine | E |
| Shredders | E |
| Soil Sterilizers | E |
| Spreaders | |
| Manure | E |
| Fertilizer | E |
| Sprayers | |
| Orchard: | |
|
Boom Type - for Insecticides and Herbicides |
E |
| Crops and Vegetables: | |
|
Power Take-Off |
E |
|
Self-Propelled |
E |
| Dusters | |
| P.T.O. and Engine Powered | E |
| Self-Propelled | E |
| Knapsack and Others | E |
| Harvesting Equipment | |
| Hay Balers - PTO and Self-Propelled | E |
| Forage Harvesters - PTO and Self-Propelled | E |
| Mowers - PTO and Self-Propelled | E |
| Mover Conditioner Combinations | E |
| Hay Conditioners | E |
| Hay Rakes | E |
| Vegetable Harvesters: | |
|
Bean |
E |
|
Potato |
E |
|
Carrot and other similar |
E |
| Turf Mowers and Cutters for Commercial Turf Production | E |
| Chain Saws: When used in timber harvesting by a commercial lumber producing or wood products firm and when used on a farm directly in the production process | E |
| Vormier-Plant, (Shrub or Tree Nursery - Sod Farm) | E |
| Product Handling Equipment | |
| Milking Machines | E |
| Bulk Milk Cooling Tanks | E |
| Plate Cooler | E |
| Graders - Fruit - Vegetable | E |
| Washers - Fruit - Vegetable | E |
| Bagging Machine - Fruits, Vegetables | E |
| Stitchers - Tobacco | E |
| Cold Storage Equipment and Refrigeration | T |
| Pumps | E |
| Forage and Feed Handling Equipment | |
| Elevators - Hay, Silage, etc. | E |
| Feed Augers | E |
| Silo Blowers | E |
| Silo Unloaders | E |
| Automatic Feeder and Waters | E |
| Bulk Feed and Storage Bins | T |
| Livestock Equipment | |
| Dehorners | E |
| Stanchions | E |
| Horsetack | E |
| Rolling Equipment | |
| Tractors | E |
| Fork Lifts | E |
| Bucket Loaders | E |
| Wagons: | |
|
Hay-Forage |
E |
|
Specialized Fruit Handling |
E |
| Trailers: Multi-purposed-Used on Farm, in and between fields | E |
| Earth Moving Equipment (except motor vehicles) | E |
| Motor Vehicles: | |
|
Farm Registration only (excluding passenger vehicles) |
E |
|
Regular Registration |
T |
| Other Equipment | |
| Ventilating Fans | E |
| Electric Generators | E |
| Pumps - Irrigation and Sprinkler | E |
| Farm Repair Equipment: | |
|
Drills, Saws and Grinders |
E |
|
Air Compressors |
E |
| Post Hole Diggers - Nursery stock etc. | E |
| Automatic Misting Equipment | E |
| Automated Egg Collection (Complete Unit) | E |
| Replacement Parts: | |
|
Egg Belts |
T 5% |
|
Egg Conveyors |
E |
|
Egg Elevators |
E |
|
Egg Counters |
E |
|
Egg Augers |
E |
|
Egg Chains |
T 5% |
|
Egg Conveyor Belts |
T 5% |
| Automated Egg Processor (Complete Unit) | E |
| Replacement Parts: | |
|
Egg Sorter |
E |
|
Egg Grader |
E |
|
Egg Washer |
E |
|
Egg Processor |
E |
|
Egg Packer |
E |
|
Egg Handling Device |
E |
|
Egg Racks |
T 5% |
|
Egg Returnable Cases and Racks |
T 5% |
|
Egg Lifting Devices |
E |
|
Gears, Tanks, Support Equipment |
T 5% |
| Automatic Cage Systems (Complete Unit) | E |
| Replacement Parts: | |
|
Cage Bottoms |
T 5% |
|
Cage Egg Trays |
T 5% |
|
Cage Supports and Frames |
T 5% |
|
Cage Tops and Sides |
T 5% |
| Watering Systems (Complete Unit) | E |
| Replacement Parts: | |
|
Water Pumps |
E |
|
Water Valves |
T 5% |
|
Water Delivery Lines |
T 5% |
|
Water Cups, Troughs |
T 5% |
|
Water Nipples |
E |
|
Water Pressure Regulators and Tanks |
T 5% |
|
Water Timers |
E |
|
Water Meters |
T 5% |
|
Water Pollution Control Devices |
E |
| Automatic Feeders (Complete Unit) | E |
| Replacement Parts: | |
|
Feed Troughs |
T 5% |
|
Feed Supports |
T 5% |
|
Feed Scales |
T 5% |
|
Feed Auger and Chains |
E |
|
Feed Hoppers |
T 5% |
|
Feed Timers |
E |
|
Feed Motors |
E |
|
Feed Gear Assemblies |
T 5% |
|
Feed Bins |
T 5% |
| Automatic Manure System (Complete Unit) | E |
| Replacement Parts: | |
|
Manure Dropping Boards |
T 5% |
|
Manure Scrapers |
T 5% |
|
Manure Belts |
E |
|
Manure Augers |
E |
|
Manure Chains and Cable |
E
|
|
Manure Motors |
E
|
|
Manure Gear Assemblies |
T 5% |
|
Manure Time Clocks |
E
|
|
Manure Controls |
T 5% |
| Environmental Controls (Complete Unit) | E |
| Replacement Parts: | |
|
Brooders and Heaters |
E
|
|
Ventilating Systems |
E
|
|
Inlet Louvers |
T 5%
|
|
Thermostats |
T 5%
|
|
Fans |
E |
|
Shutters |
T 5%
|
|
Pressure Gauges |
T 5%
|
|
Motors |
E |
| Lighting Systems (Complete Unit) | E |
| Replacement Parts: | |
|
Timers and Dimmers |
E
|
|
Bulbs and Tubes (Poultry) |
E |
| Fly, Odor, and Parasite Control (Complete System) | E |
| Replacement Parts: | |
|
Pumps |
E
|
|
Lines |
T 5%
|
|
Tanks |
T 5%
|
|
Nozzles |
E
|
|
Sprayers |
T |
| Fan-Jet heating, cooling and ventilating system when used in Commercial Greenhouses | E |
| Temperature Alarm System | E |
| Livestock, Feed, Seed, Fertilizers | |
| Ground Limestone | E |
| Hydrated Lime | E |
| Insecticides | E |
| Fungicides | E |
| Seed Inoculations | E |
| Seed Disinfectants | E |
| Plant Hormones | E |
| Weed Killers and Similar items for similar purposes | E |
| Manure Marl | E |
| Livestock | E |
| Rabbits | E |
| Poultry | E |
| Feed for livestock, rabbits, poultry | E |
| Seeds | E |
| Plants - to produce food for human consumption or are purchased to be sold or the produce thereof is to be sold in the regular course of business | E |
| Equines - Except horses racing at a commercial track in Connecticut | E |
| Hoes, rakes, shovels, pitchforks, pruning shears and similar items | E |
| Cow Towels | E |
| Tree Seedlings or Transplants when sold by the State Forester under Section 23-23 | E |
| Coal Tax Disinfectant | E |
| Hormone Dust and Spray | E |
| Louse Powder | E |
| Miscellaneous | |
| Tillage: | |
|
Mould Board |
E
|
|
Sod Cutter |
E
|
|
Disc, Spring teeth, Spike Teeth |
E
|
|
Plow Points |
E
|
|
Subsoil Tiller point |
E |
| Seeding - Planting: | |
|
Disc Openers |
E
|
|
Seed and Fertilizer Hoses |
T
|
|
Furrow Openers |
E
|
|
Digger - on Post Hole digger |
E |
| Manure and Fertilizer Spreaders: | |
|
Bed Chains and bars |
E
|
|
Spreader Chains and Frails |
E
|
|
Cutter Chains and Paddles |
E |
| Sprayers: | |
|
Nozzles |
E
|
|
Hoses |
E |
| Harvesting: | |
|
Cutting Section and Guards |
E
|
|
Frail Knives |
E
|
|
Rake and Baler Teeth |
E
|
|
Baler Stripper Bars |
E
|
|
Turf Mower Cutting Reel |
E
|
|
Chain Saw Chains |
E |
|
Product Mover Augers |
E
|
|
Chopper Knives |
E |
| Product Handling: | |
|
Milking Machine Washers |
T
|
|
Bagger Stitcher Needles |
E
|
|
Pump Vanes |
E
|
|
Milking Machine Inflations |
E |
| Forage and Feed Handling: | |
|
Bar Auger and Chains |
E
|
|
Blower Pipes |
T
|
|
Waterer Valves and Paddles |
T |
|
Bucket on Bucket Loader |
E |
| Ventilating Fan Blades | T |
| Irrigation Pipe and Sprinklers | T |
| Paper and twine to hold product | E |
| Potato bags, wooden crates, etc. (if not returnable) | E |
| Rock Salt | E |
| Rat Poison | T |
| Livestock and Fly Sprays powder and dust (applied directly to animals) | E |
| Cattle bedding - shavings, straw, sawdust, sand | E |
| Poultry grits, shells, charcoal, litter, medicines | E |
| Humus, peat moss, loam, etc. | T |
| Non-food bearing trees, shrubs, bushes, flowering plants, bulbs, flowers | T |
| Cloth milk strainer discs | E |
| Shade Cloth - Tobacco farms | E |
| Gasoline, Diesel fuel, lubricating oil (when used on farm machinery) | E |
| Paint | T |
| Construction on maintenance material | T |
| Repair or replacement parts for machines | T 5% |
| Cleaning materials - soaps, powders, brushes, sponges, brooms, etc. | T |
| Calf Tablets | E |
| Crow Jinx | E |
| Hand Duster | E |
| Milkstone remover | E |
| Milking Pails | E |