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

We have to pay tax here. (The farm feed we do not, but for my personal chicken flock, yes…I don’t hold the farm certificate or buy the farm’s feed.)

I know the tax on feed laws vary from state to state. To qualify for an Agriculture Production exemption in my state, it only asks if we sell any chicken eggs. If yes, you qualify. We sell our excess eggs.

If you raise meat chickens for personal consumption, you have to pay tax on feed. However, if you sell some of your meat chickens, then you qualify. Sounds like a person should sell a processed chicken or two to their parents or children to qualify for that tax exemption.

:lau But don't take tax advice from me. I only submitted my info to our state system and got approved. It will save me less than $50 per year in tax on feed for my small flock. But that's more than 3 bags of feed at current prices. It was worth the effort for me to fill out the form.
 
Don't get tax advice from farm store managers.

and tax regimes vary GREATLY across the states - what is true for you, in your town, may not be true even in another part of town (if a special taxing district is established), much less in another state.

This is an area where it [saves] to do your own research.

Government tax "policy" is exactly the kind of incoherent and exception ridden mess you should expect out of any political process which has played out over decades or centuries where the underlying policy goals are unrelated or in tension.

There is tax policy to raise revenues - a flat sales tax on goods and services is great example.

There is tax policy to impose moral judgements on certain transactions, positive or negative - so called "sin taxes" on alcohol, cigarettes, "luxury" items and also tax forbearance on behaviors society want to encourage, like donations to charity.

and there is tax policy to encourage certain spending choices or please political constituencies. Here in Florida, we have a "tax free school holiday" to encourage the purchase of school supplies as alternative to the state funding them. We also have a "tax free hurricane holiday" to encourage people to prepare for seasonal storms. We partially reduce the tax burdens or property values for farming "Ag Exemptions", 1st homes "Homestead exemption", Veterans and Seniors (often exempted from school taxes on property)

This even made me look for additional income on the Internet. I found this great resource, you can view it and get reviews of different games and even win some money. You can also find games there with the necessary payment methods, which is quite convenient. I hope this helps you.

and generally in the US, we favor only taxing the final product for end consumer use, not all the steps that turn raw materials and labor into a final product (that's the theory behind a "Value Added Tax" in the EU and elsewhere). With the obvious exception of a tax on real property (home/land taxes) but not held assets (art, jewels, precious metals, savings).

Please note that i am not offering any judgements here, merely describing the systems that is. I will not be further commenting on tax policy in the US or elsewhere - merely offering an observance for why situations may differ (substantially) between posters on this topic.
Yeah, tax laws are a maze. One wrong turn and suddenly you owe money in a state you've never even been to!
 
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No. I pay Goods & Services Tax on it instead.

I don't know where you live, but here in the state of Minnesota in the USA, we don't have to pay tax on production. Chicken feed is considered an agriculture production product if you sell the eggs, which I do. Also, in Minnesota, food is not taxed. So, when I sell our excess eggs, I don't have to collect any sales tax.

If you have a tax exemption program in your state/country, I encourage people to take advantage of it. Those tax exemptions are put in place by legislatures who want to encourage that activity. In my case, I'll save up to about $50.00 per year by my tax exemption status for my backyard flock.
 
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.
Yes, here in New York state, all livestock feed and pet feed is taxable. 8 and 3/4%
 
Yes, here in New York state, all livestock feed and pet feed is taxable. 8 and 3/4%

Our Minnesota sales tax is currently 8.5%. Pet feed is taxed. Livestock feed is taxed unless you apply for the Agriculture Production exemption allowed by law in my state. Lots of people here are unaware of the Agriculture Production exemption and/or just don't bother to fill out the form (5-minutes) for the exemption.

It was worth my time to apply for the tax exemption as it will save up to about $50.00 per year on my feed costs.

:idunno You might be eligible for tax exemption on your chicken feed in NY. I asked MS CoPilot AI if NY has any tax exemption program for chicken feed like we do in MN. There is a possibility in NY that you might be able to get your livestock feed tax free! Here is the response I got...

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Yes, New York State provides tax exemptions for certain agricultural inputs, including feed for livestock. Farmers in New York can benefit from exemptions on sales tax for items used directly in agricultural production, such as chicken feed, under the state's agricultural tax policies. These exemptions are designed to support farming operations and reduce costs for agricultural producers.

Ref: www.tax.ny.gov; newyork.public.law

**************************

For anyone reading this post, you might be eligible for tax exemption status in your state for chicken feed if you meet certain requirements. In my state, we have to sell some of our eggs, which I do, to qualify. I might not be a large-scale farmer per se, but I do produce eggs which we sell. That is enough in my state to qualify.
 
Our Minnesota sales tax is currently 8.5%. Pet feed is taxed. Livestock feed is taxed unless you apply for the Agriculture Production exemption allowed by law in my state. Lots of people here are unaware of the Agriculture Production exemption and/or just don't bother to fill out the form (5-minutes) for the exemption.

It was worth my time to apply for the tax exemption as it will save up to about $50.00 per year on my feed costs.

:idunno You might be eligible for tax exemption on your chicken feed in NY. I asked MS CoPilot AI if NY has any tax exemption program for chicken feed like we do in MN. There is a possibility in NY that you might be able to get your livestock feed tax free! Here is the response I got...

*************************

Yes, New York State provides tax exemptions for certain agricultural inputs, including feed for livestock. Farmers in New York can benefit from exemptions on sales tax for items used directly in agricultural production, such as chicken feed, under the state's agricultural tax policies. These exemptions are designed to support farming operations and reduce costs for agricultural producers.

Ref: www.tax.ny.gov; newyork.public.law

**************************

For anyone reading this post, you might be eligible for tax exemption status in your state for chicken feed if you meet certain requirements. In my state, we have to sell some of our eggs, which I do, to qualify. I might not be a large-scale farmer per se, but I do produce eggs which we sell. That is enough in my state to qualify.
Thank you.

I'm aware of the agricultural exemption, but there are strings attached.
You have 3 or more acres, which we do and..... you must make $10,000 or more per year in income from the sales of "agricultural products" to qualify for the feed tax exemption.

We moved here last October, only 7 months ago, and are still settling in.
House needed MAJOR repairs (many were a surprise) and it snowed almost EVERY DAY from November 7th, through.... well, today ❄️- yes it's cccold and snowing out.

We weren't planning on selling anything from here and intended on animals for our own use only.
We are VERY remote... no houses in sight.
Gave some thought about selling eggs, but the closest populated area is almost an hour away. Not many people are going to make a 2 hour round trip for a dozen eggs....

So, once the weather gets warm (if it gets warm🤔) we will figure out if there is a market for anything that could earn us at least $10K a year that people would be willing to drive for AND that my husband and I can manage. We aren't young and both have mobility issues.

Many things to figure out🤯
 

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