Do You Have To Pay Sales Tax on Your Chicken Feed?

gtaus

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Mar 29, 2019
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I buy most of my chicken feed at our local Fleet store. I have never been charged sales tax for years and years. Anyways, they got a new "computer checkout system" in the store and I got charged sales tax for the first time ever. So, I brought my receipt to the customer service counter and asked them why I have to pay sales tax on chicken feed, assuming it was a mistake in their new checkout system.

:tongue I ended up talking to one of the store managers and he tried to tell me that the MN tax law had changed which is reflected in the checkout system adding the sales tax. When I asked when the law was changed, he backtracked on his statement and replied that the new system automatically adds sales tax to chicken feed. Turns out, that was not true either. Years ago, I had filed a form for exemption for feed and the store never charged me sales tax. Although I have been shopping at that Fleet store for 35 years, turns out I'm not considered an existing customer because I did not have a credit account with them. Under their new system, only the customers with credit accounts at the store were carried over to the new system. So, I had to go through a whole procedure for them to add me back to their system as a "new" customer and I will have to fill out a new Form ST3, Certificate of Exemption.

I have to say that the store manager was less than helpful. He gave me incorrect information trying to cover up their problems that they are having with their new system. When he left, I asked the lady at the customer service desk if there were other people complaining about this tax situation. She told me that lots of people were upset about the changes and that the employees themselves were never trained on the new system, and they are trying to work out the bugs while using the new system.

⚠️ I did get a new Form ST3, Certificate of Exemption so I hope I can get my chicken fed tax free again. But here again, the store manager was not at all helpful. He asked me if I was going to eat the chickens, which I said eventually, maybe, but they are laying hens, and I sell some of the eggs. Instead of telling me to apply for the Agricultural Production exemption on the form, he told me that I could not get the chicken feed tax free because I would eat those chickens. If he wanted to be helpful, he should have told me that a person can qualify for tax free chicken feed if you sell some of your eggs under the Agricultural Production exemption, then ask me if I sell any of my eggs. Instead, he immediately goes to do you eat your chickens - then you have to pay tax. That's not what the law says!

:idunno I kindly reminded the manager that none of the other places that sell chicken feed in town charge sales tax on their feed, but he did not care because their new system automatically adds sales tax. I told him that adding another 10% tax on top of their feed was going to be uncompetitive for the Fleet store, but he did not seem to care. At that point, I just gave up on him ever trying to be helpful, for me, for his store, or even for himself. I'll fill out the new Form ST3 for the store but if does not process, I'll just start buying my feed elsewhere if I can get a lower price.

:old It just hurts to have been a supportive customer for over 35 years at that store. I have bought all my riding lawn mowers from them over all those years. Almost all my outdoor equipment and fishing supplies from that store. Most of my feed is purchased at that store, and so much more. It's one of my main stores in town. It was the first time I had to deal with that manager, I have never seen him before, but he was not a very good advocate for his store or customer support. I hate being the old man saying I remember when things were better, but they were. I guess I'll fill out a new Form ST3 and hope it gets processed correctly, but I doubt anyone at the store could care less. That's just too bad.

:caf Well, paying an additional 10% tax on chicken feed is an expense that I don't want to add to all my other chicken expenses. Just wondering if others of you in BYC land pay tax on your chicken feed, or not? Drop me a post if you can. Thanks.
 
Can you get the tax-free exemption for Agriculture Production in Michigan? You might want to look into that if you buy a lot of feed.
I'm not sure. I didn't even know that was a thing.
I do have to buy lots of feed, about 5-6 bags at a time. Me, & my sister split the bill though.
 
I do pay sales tax on chicken feed. Since I'm not selling eggs or chicks, I doubt I would qualify for no sales tax. Actually, this has never crossed my mind. I figured it was like buying any other pet food... but these pets give me something back.

Yes, Freya, you give us a lot of entertainment and love. We will happily keep buying your dog food.
 
Trust me, pay the tax. If you claim you are selling products the sales tax folks will be up your wazoo wanting monthly sales tax reporting.

Well, I have been tax exempt on feed for many years, selling some eggs for cash to friends, and never had any tax problems. But I don't make any real money. My egg sales pay for the feed but nothing more. If I had to report everything with my backyard flock as a business, I suppose it would turn into a tax write off more than profit.

In any case, nobody ever questioned the tax exempt status until the Fleet store got their new computer system. Then, everybody started getting taxed on feed unless you have a credit account with the store.

Well, like I said, the other stores selling feed don't change sales tax. At least, not yet. Maybe that will change, too. I hope not.
 
We don't have sales tax in MT

That must be nice. I know some states don't, but here in MN I think the sales tax is something like 8.5%. There are some exemptions like for (people) food and clothing. Pet food is taxed. But until just now, my chicken feed was tax exempt. I hope to get that corrected with submitting the new Form for tax exempt status.
 
I pay sales tax on feed here in Iowa. But I am asked -- just about every week at Bomgaars -- if I have a farm exemption. I assume it would require a lot of government paper work, so I just pay the tax and save myself the agony. Because of the local option sales tax, it's 7.5 percent here.

Good luck with the new form, @gtaus!
 

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