Slightly irritated this morning...sales tax on chicken feed.

[cassie]

States vary and taxes don't make any sense anyway. And sometimes the store doesn't know what should be taxed and what shouldn't. I am in California. There is no tax on food. Since chickens are food animals, there is no tax on chicken feed. If I buy alfalfa hay for the horse it is taxed. If I buy alfalfa hay for the goats or cows it is not.

 

[Muggsmagee]

Quote:
You must file your income tax as a farm then. That is the only way you can get a tax # in NYS. Once it is on file at whatever store you go into you are free to buy feed, etc as a farm but make sure you file your NYS tax using that number. Also, if someone in the tax dept. gets curious they can check to see if you're showing sales from your "farm". Otherwise your chickens, rabbits, alpacas, whatever, are pets and you must pay tax to feed them.

That's why we save our receipts...this will be our first year filing as a farm "business". I have a computer program I've been putting our farm's spending/earning money into. I just started it...and if this weren't more hobby at this point, we'd REALLY be in the red! Ha ha ha. My point in my initial response was we didn't need to have proof of our sales, etc. BEFORE becoming tax exempt. We could set up an acount with these places and jump into becoming tax exempt. Now, come tax season, we'll figure out if this becomes a headache. (Our tax is close to 10% of sales.) That really adds up.