The Virginia Department of Taxation ruled that equipment used in ancillary farming activities is taxable. The taxpayers were farmers who bought mowers and chain saws for use in maintaining the edges of their fields.
Virginia exempts machinery and equipment that is necessary for agricultural production. Equipment used for "ancillary activities" does not qualify for the exemption. Ancillary activities are those that support but do not directly affect agricultural production. The ruling determined that maintaining the edges of fields was an ancillary activity, so equipment used for that purpose was taxable.