12 CSR 10-110.910 - Livestock
(1) In general, the sale of livestock,
animals or poultry used for breeding or feeding purposes, feed for livestock or
poultry, feed additives, medications or vaccines administered to livestock or
poultry in the production of food or fiber, and sales of pesticides and
herbicides used in the production of aquaculture, livestock or poultry are
exempt from tax.
(2) Definition of
Term.
(A) Aquaculture-The controlled
propagation, growth and harvest of aquatic organisms as defined in section
277.024, RSMo.
(B) Commercial breeder-A person, other than a
hobby or show breeder, engaged in the business of breeding animals for sale or
exchange in return for consideration and who harbors more than three (3) intact
females for the primary purpose of breeding animals for sale.
(C) Feed-Food essential for growth, fattening
or nourishment of livestock or poultry.
(D) Feed additives-Tangible personal
property, including medicine or medical additives added to feed.
(E) Livestock-Cattle, calves, sheep, swine,
ratite birds, including but not limited to, ostrich and emu, aquatic products
as defined in section
277.024, RSMo, elk documented as
obtained from a legal source and not from the wild, goats, horses, other
equine, or rabbits raised in confinement for human consumption.
(F) Poultry-Any domesticated bird, such as
adult or baby chickens, turkeys, ducks, guinea fowl or
geese.
(3) Basic
Application of Exemptions.
(A) Pursuant to
section 144.030.2(1), RSMo, sales of feed for livestock or poultry are not
subject to tax.
(B) Pursuant to
section 144.030.2(22), RSMo, sales of feed additives, medications or vaccines
administered to livestock or poultry in the production of food or fiber, and
sales of pesticides used in the production of livestock or poultry for food or
fiber are not subject to tax. Examples include hormones, digestive aids,
antibiotics, hog wormers, tonics, medical preparations.
(C) Pursuant to section 144.030.2(7), RSMo,
sales of animals used for breeding or feeding purposes are exempt. Unlike the
exemptions for feed and feed additives, which are limited to livestock or
poultry, this exemption applies to all animals.
(D) Pursuant to section 144.030.2(22), RSMo,
sales of bedding used in the production of livestock or poultry for food or
fiber are exempt. Examples of bedding may include, but are not limited to, wood
shavings, straw and shredded paper.
(E) Pursuant to section 144.030.2(29), RSMo,
livestock sales are exempt when the seller is engaged either in the growing,
producing or feeding of such livestock, or in the business of buying and
selling, bartering or leasing of such livestock.
(F) Pursuant to section 144.030.2(32), RSMo,
sales of pesticides or herbicides used in the production of aquaculture,
livestock or poultry are exempt.
(G) Pursuant to section 144.030.2(35), RSMo,
sales of feed which are developed for and used in the feeding of pets owned by
a commercial breeder when such sales are made to a commercial breeder, licensed
pursuant to sections 273.325 to
273.357, RSMo are
exempt.
(H) Sales of poultry to
persons to produce eggs for the sole purpose of the person's consumption are
subject to tax.
(I) Sellers of
poultry are not subject to tax when-
1. The
poultry is sold for breeding purposes; or
2. The poultry is sold to persons who raise
the poultry for subsequent sale in dressed or processed form; or
3. The poultry is used to produce eggs to be
ultimately sold in processed form or otherwise at retail; or
4. The poultry are purchased for
resale.
(J) Sales of
animals for the purchaser's personal enjoyment or use only, are subject to tax.
Sales of animals for breeding or feeding purposes as part of a business
enterprise are not subject to tax.
(4) Examples.
(A) An individual purchases feed,
nonprescription vaccines, and bedding for show horses. The purchase of the feed
is not subject to tax, however the purchase of the vaccines and the bedding is
subject to tax.
(B) A farmer
purchases feed, vaccines and bedding for use in his swine operation. The
purchases of the feed, vaccines and bedding are exempt.
(C) A rancher breeds and sells horses. The
sales of the horses are not subject to tax.
(D) A rabbit farmer raises rabbits, which are
sold for processing as food for human consumption. Feed for the rabbits is not
subject to tax because rabbits raised in confinement for human consumption are
livestock.
(E) A person sells feed
to a pet shop which raises and sells rabbits to the general public as pets. The
sale of the feed is subject to tax.
(F) A fish farmer purchases fish for use in
his aquacultural operation. The purchase of the fish is exempt from
tax.
(G) An individual decides to
construct and stock a lake on his farm for recreational fishing by his family,
neighbors and friends. The purchase of the fish is subject to tax.
(H) A breeder of parakeets purchases feed for
breeding stock. The bird feed is subject to tax, because a parakeet breeder
does not fit the definition of a commercial breeder.
Notes
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