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

[wildeflowers]

I don't know specifically about chicken feed, but to buy ~most~ things for my business tax free, I must provide my tax ID number, so I can see why he is thinking that. Also, I know that as a business owner, I can get in a lot of trouble for not charging tax or turning it in appropriately. And if I forget to charge someone tax, I must pay it anyway out of my own money. There are so many loopholes and rules, he is probably worried about making sure he is covered or the accountant told him the wrong thing.

But the way the exemption is written, it does sound like it is ~generally~ tax exempt. Farm exemption does vary state by state though.

 

[AllTheseCreatures]

Sounds like you need to provide documentation. Just because no one else is asking for proof, doesn't mean he is in the wrong for doing so. If you don't want to provide proof, I say don't buy feed there. Calling him a cheat was unkind.

At some future date he may be audited and needs to show that every entity that bought tax-free goods from him was a business. If he cannot, he will have to pay that tax out of his own pocket in addition to a fine for not complying with the regulations regarding tax collection. I was a small business owner, I have such a file I have to keep (among other things) for every wholesale client (reseller) I did business with and did not charge tax. We call it a TAX ID. If you are charged for sales tax when you are tax exempt you can file for a refund of those taxes. Or take in your proof of tax exempt status and ask for a refund of the tax you paid.

 

[Neil Grassbaugh]

If your chickens are pets then what they eat is pet food = Taxable?

If they are livestock they eat feed = Nontaxable?

"Livestock" may be dispermitted in some jurisdictions. "Pets" may have more of a chance against municipal zoning.

I have never thought of chickens as pets under any circumstances.
And nobody on the planet loves chickens and turkeys anymore than I do.
In Ohio I have never paid sales tax on ay chicken feed if it was a 50 lb sale of show bird feed or hundreds of tons of turkey or chicken feed.

 

[Muggsmagee]

Where are you located? Here in NY we had to simply fill a form out at the stores we go to...Lowes, TSC, Richer Feeds, White's Farm Supply...it was to file that we are agriculturally tax exempt (SSN, address, phone, etc). We now just provide our phone number when we check out, and all of our info is kept in their individual data bases. We save the receipts, so we are organized come tax season. That was ALL we had to do. We didn't need the "proof" of ANYTHING at ANY store. I'm sure your state/county website will have the info or number you can look up.

If what you copied was their rule policy...it seems there shouldn't be a tax on the feed. Was it the owner/manager you talked with?

 

[AllTheseCreatures]

Quote:
The proof you provided was your personal information. After an audit is completed, that information will be cross-referenced with their tax files. Individuals who took a tax exemption but where not entitled to receive it will be billed for back taxes with interest of course.

The easiest way to clear this up is to contact your local tax authority. They can provide you with a clear outline of the law and how it applies to your specific situation. It's tricky to navigate and they know that.

If you are raising chickens for their eggs that is agriculture and they are livestock. If you are selling eggs you are in business. The lines between livestock and pets can get blurry for backyard hobbyists which is why I would call and ask. Fifty cents for a bag of feed really adds up over a year.

I agree with Neil, if you want your flock to be considered as livestock for tax purposes, be sure to look at how that designation affects your zoning. If the IRS doesn't get you, the county might . . .

 

[Bear Foot Farm]

I get my feed at TSC and am tax exempt for farm... however, I always get charged tax on chicken feed. I always have thought it's odd.

Do you TELL them every time that you have an exemption?

If not, they will ring it up as a normal sale no matter what items you buy.
If you ARE telling them and they STILL charge tax on LABLED "chicken feed" you need to talk to the manager, because the products are all handled by the computer, and they must have something entered incorrectly​

 

[silkiechicken]

Taxes on what and where all depend on where you live.

I get taxed on feed in Washington.

Personally, tax me on what I buy, not what I make, because I'd rather pay taxes on what I really use and not pay for subsidies for everyone on anything gov't decides to put it on. I'd rather keep those tax pennies and get what I can though interest.

We don't bother with any tax exemption stuff, because in the end, "income" from the "business" would filed and taxed there instead.

 

[Ironmaiden]

They get us coming or going..no matter what. Our Gov needs our money to send overseas to build Hydroelectric dams and schools in Iraq.

 

[woodmort]

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.

 

[acid_chipmunk]

No tax on feed here in PA at my feed mill, unsure of the local feed and pet store. It is more expensive at the feed and pet, so we don't but it there. (also, we buy Purina foood from the feed mill, not their own feed)