Equipment Used to Spread Bio-Solids on Farm Ground Taxable in Virginia

Thursday, October 31st, 2013

 
 
Share
Link
Virginia
General

The Virginia Tax Commissioner recently ruled that equipment used to spread bio-solids on farm ground did not qualify for the agriculture equipment exemption.

The taxpayer removed bio-solids from municipal waste treatment plants, and contracted with farmers to spread the bio-solids on farm ground. The taxpayer purchased equipment necessary to spread the bio-solids and claimed the equipment qualified as exempt agriculture equipment.

Virginia exempts sales of tangible personal property necessary for use in agriculture production for market when sold to a farmer. The rationale behind the exemption, as stated by the Commissioner, is that items purchased by farmers are used to produce products that will subsequently be taxed. The agriculture exemption prevents double taxation by taxing only the ultimate sale of farm products to the consumer.

In this case, the taxpayer was not a farmer. The taxpayer was not engaged in agricultural production for market. Without being a farmer engaged in production for market, the Commissioner found that there was no reason to exempt the taxpayer's purchases.

http://www.policylibrary.tax.virginia.gov/OTP/Policy.nsf


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 www.ttrus.com or call 866.578.8193.

Maryland Sales Tax Holiday for Energy Efficient...

Friday, February 16th, 2018 -The Maryland sales tax holiday for energy efficient appliances runs from Saturday, February 17, 2018, at 12:01...

Dental Prostheses Exempt in Michigan

Wednesday, February 14th, 2018 -The Michigan Department of Treasury recently released a publication describing the retroactive exemption for d...

Taxability of Amusement Devices and Video Games in...

Monday, February 12th, 2018 -The Wisconsin Department of Revenue has released guidance addressing the taxability of video games and amuseme...

Video Streaming Subscriptions Taxable in Texas

Friday, February 9th, 2018 -The Texas Comptroller of Public Accounts recently ruled that video streaming and add-on services are taxable a...

Moratorium on Medical Devise Excise Tax Extended Two More...

Wednesday, February 7th, 2018 -The United States Congress extended the moratorium on the Medical Device Excise Tax (MDET) for another two yea...

2018 Colorado Sales Tax Rounding Change

Monday, February 5th, 2018 -The Colorado Department of Revenue has released guidance explaining new rounding rules for sales tax returns f...