Form Pub. Ks-1550 - Kansas Business Taxes For The Agrcultural Industry Page 5
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32The purchase of fish to raise and sell for
silos, fence, land, passenger vehicles, all terrain
vehicles, motorcycles, trucks, truck tractors, trailers,
human consumption is exempt. The
semitrailers, or pole trailers, other than a farm trailer
purchase of fish for an aquarium is taxable.
(see page 16).
FARM MACHINERY AND EQUIPMENT
E
U
T
XCLUSIVE
SE
EST
An item is considered to be farm machinery and
The sales tax exemption for farm or aquaculture
equipment when it is used ONLY in farming, ranching
machinery and equipment found in K.S.A. 79-3606(t)
or agricultural production as defined. If it is used for
has three categories of exempt transactions: 1) the
another purpose, an exemption cannot be claimed for
purchase, lease or rental of the equipment; 2) repair or
farm machinery and equipment.
replacement parts for the equipment; and, 3) labor
services to repair and maintain the equipment.
If a forklift will be used only for farming or
ranching (which includes the operation of
Two conditions must be met to claim this exemption.
a feedlot, farm and ranch work for hire,
The buyer must be engaged in farming or ranching as
and the operation of a Christmas tree
defined on page 4, and the property purchased, repaired
farm or nursery) it may be purchased as exempt farm
or serviced must be used only in farming and ranching.
machinery and equipment. However, when the forklift is
used in another business, such as seed or chemical
Farm Machinery & Equipment Defined
sales, the purchase of the forklift is subject to sales tax.
As with many terms, the definition of farm machinery
If a skid loader is purchased by a farmer
and equipment present in sales tax law and our common
and used exclusively in farming operations,
everyday use of the phrase differs. Many types of
such as removing manure from a feedlot,
equipment are used in a farming or ranching operation,
removing snow near or in a pen or pasture
but not all qualify for the exemption. For the purpose of
to gain access to livestock, farm pond building/cleaning,
the sales tax exemption, farm machinery and equipment
filing holes or tire tracks that are hazardous to livestock
is defined as all machinery and equipment which is
in a pasture or pen, fence repair work, windmill repair,
ordinary and necessary for the growing or raising of
lifting equipment used in farming operations, or pasture
agricultural products.
or fence shrub clearing, the purchase would be exempt
under the farm machinery and equipment exemption.
The first category of items that come to mind as farm
If the skid loader was used in general snow removal,
machinery and equipment are implements of husbandry.
road grading, or building construction, its purchase
As defined by vehicle law K.S.A. 8-126(cc), these are
would not be exempt under the farm machinery and
vehicles designed or adapted and used exclusively for
equipment exemption.
agricultural operations, including feedlots, and only
incidentally moved or operated on public highways.
On page 6 are representative listings of items used
Implements include farm tractors, combines, and other
by agribusiness, and their usual tax treatment for sales
self-propelled farm implements.
tax purposes. Other examples are in the industry
application section of this guide that begins on page 9.
Also included are aquaculture machinery and
equipment. This is personal property actually and
Attachments
regularly used in any aquaculture operation. An
aquaculture operation includes the feeding out;
Attachments are defined as items that are essential
breeding, growing or rearing; and, selling or transporting
to the operation of farm machinery and that contribute
aquatic plants and animals.
directly to the operation of the equipment. Attachments
are exempt from sales tax if used for a qualifying
Since July 1, 2007, the definition of farm machinery
agricultural purpose. Items that should be regarded as
and equipment has included precision farming
farm machinery attachments include:
equipment that is portable or is installed or purchased
• Tractor-mounted loader/scoop/grapple fork
to be installed on farm machinery and equipment.
• Tractor-mounted snow plow or snow blower
Precision farming equipment includes the following items
• Tractor or combine cab
used only in computer-assisted farming, ranching or
• Combine head
aquaculture production operations: soil testing sensors,
• Combine pick-up
yield monitors, computers, monitors, software, global
• Planter monitoring system
positioning and mapping systems, guiding systems,
• Radar ground speed sensor
modems, data communications equipment and any
• Agricultural global positioning system
necessary mounting hardware, wiring and antennas.
• Grain yield monitor
• Sprayer control
IMPORTANT: The terms farm machinery and
equipment and aquaculture machinery and
• Electronic wind monitor
equipment do not include buildings, building materials,
• After market lighting
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