Sales and Use Tax Responsibilities of Ag-Chemical Dealers, Cooperatives, Elevators, Fertilizer Dealers

"Production of Agricultural Products" Begins With:

"Production of Agricultural Products" Ceases When:

Exempt

Taxable

Taxable vs. Exempt Examples

Example 1 - Nurse Tank (for example, an anhydrous ammonia tank)

Example 2 - Grain Vacuum Conveyor

Example 3 - Tractor

Example 4 - Skidloader

A co-op uses a skidloader 60% of the time to clean the feedlot of its livestock operation. The remaining 40% is used to handle fertilizer and do utility work on the co-op premises. The skidloader is exempt because it is primarily (more than 50%) used in agricultural production.

A co-op uses a skidloader 100% of the time to load bags of seed, fertilizer, and feed on customer's trucks.

updated 02/24/11