Agricultural Rotary Cutter Taxable in Arkansas

Wednesday, June 5th, 2019

Combine harvester harvesting crops at sunset with rotary cutter.

The Arkansas Department of Finance and Administration (DFA) recently determined that a rotary cutter used in the production of cattle and chickens was taxable.

Generally, farm machinery and equipment are exempt from sales tax when "used exclusively and directly for the agricultural production of food and fiber as a commercial business."

Here, the taxpayer bought a rotary cutter and reported that they used it in the production of cattle and chickens, but it was unclear whether the rotary cutter was ultimately purchased exclusively for farming as a commercial business. The DFA was uncertain how a rotary cutter or mower could be used in the production of cattle and chickens. Therefore, the DFA determined the exemption did not apply because the taxpayer did not show that the equipment was used directly for the agricultural production of food and fiber as a commercial business.

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at or call 866.578.8193.

Data Survey Services Not Taxable in South Carolina

Monday, June 24th, 2019 -The South Carolina Department of Revenue recently ruled that business data survey services were non-taxable pr...

Senior Center Cafeterias are Taxable in Missouri

Friday, June 21st, 2019 -Missouri's Director of Revenue recently issued a letter ruling taxing the sale of cafeteria food by a 501(c)(3...

Hot-Air Balloon Rides in Missouri are Taxable When...

Wednesday, June 19th, 2019 -Missouri recently released a letter ruling addressing the taxation of hot-air balloon rides. The taxpayer was ...

Nevada Exempts Certain Medical Equipment

Monday, June 17th, 2019 -Effective July 1, 2019, Nevada will exempt durable medical equipment, oxygen delivery equipment, and mobility ...

Participatory Sports are Taxable in New York

Friday, June 14th, 2019 -The New York Division of Tax Appeals recently denied a refund claim made by an instructor-led indoor spin clas...

Marketplace Facilitators to Collect Tax in Vermont

Thursday, June 13th, 2019 -Vermont recently passed a bill requiring marketplace facilitators to collect and remit sales tax on retail sal...