Ruling 90-19

Agricultural Exemption

The sales of repair parts for farming machinery or equipment used exclusively in agricultural production are exempt from sales and use tax. The charges for said repair parts must be separately itemized on the bill. Labor charges for repair services performed on tangible personal property used exclusively in agricultural production are subject to sales and use tax.

Labor charges for renovation services rendered to farm structures are subject to sales and use tax. The sales of lumber, hardware and materials which are sold directly to farmers for the construction or repair of farm structures used exclusively in agricultural production are exempt from sales and use tax.

LEGAL DIVISION

February 7, 1990