North Carolina Administrative Code Title 17 — Revenue

17 NCAC 07B .1101

Farm Machinery: Equipment: Services

Official textreports.oah.state.nc.us67 subsections

# (a)

Sales of items, as the term item is defined in G.S. 105-164.3, to farmers or other persons are exempt from tax when all of the following requirements are met:

# (1)

the farmer or other person is a qualified or conditional farmer;

# (2)

the farmer or other person has a current exemption certificate number;

# (3)

the item is listed in G.S. 105-164.13E(a);

# (4)

the farmer or other person primarily uses the item in farming operations; and (5) the seller complies with the certificate of exemption requirements in G.S. 105-164.28.

# (b)

Examples of farm machinery, attachment and repair parts for farm machinery, and lubricants applied to farm machinery that are exempt from sales and use tax, pursuant to G.S. 105-164.13E, when purchased by qualifying or conditional farmers and used primarily in farming operations include the following:

# (1)

tractors;

# (2)

plows;

# (3)

harrows;

# (4)

cultivators;

# (5)

mowers;

# (6)

planters;

# (7)

corn pickers and snappers;

# (8)

manure spreaders;

# (9)

manure loaders;

# (10)

harvester threshers;

# (11)

rotary tillers;

# (12)

fertilizer distributors;

# (13)

wind-rowers;

# (14)

forage blowers;

# (15)

stalk cutters;

# (16)

seeders;

# (17)

grain loaders;

# (18)

harvesters;

# (19)

cotton pickers;

# (20)

rotary hoes;

# (21)

corn and hay elevators;

# (22)

tobacco curers;

# (23)

tobacco flues;

# (24)

tobacco trucks or slides;

# (25)

wagons;

# (26)

non-highway trailers;

# (27)

mechanical rakes;

# (28)

balers;

# (29)

rod weeders;

# (30)

combines;

# (31)

tobacco transplanters;

# (32)

shredders for corn stalks;

# (33)

power loader lifts;

# (34)

platform carriers;

# (35)

portable insecticide sprayers;

# (36)

chainsaws;

# (37)

motor oils, greases, lubricants, and anti-freeze; and (38) hydraulic fluids.

# (c)

Examples of commercially manufactured equipment, and parts and accessories for equipment, that are exempt from sales and use tax, pursuant to G.S. 105-164.13E, when used, placed, or installed in a commercially manufactured facility, enclosure, or structure for housing, raising, or feeding animals include:

# (1)

animal clippers and parts for animal clippers;

# (2)

cooling fans;

# (3)

egg cooling cabinets for housing, raising, or feeding poultry;

# (4)

feed mills;

# (5)

mechanical barn cleaners;

# (6)

scales; and (7) silo unloaders.

# (d)

Examples of repair, maintenance, and installation services that are exempt from sales and use tax, pursuant to G.S. 105-164.13E, when purchased by a qualifying or conditional farmer include:

# (1)

Repair or maintenance of a tractor that is used primarily in farming operations.

# (2)

Repair of a roof for a chicken house used for housing, raising, or feeding chickens.

# (3)

Repair or maintenance for any of the items listed in Paragraph (b) of this Rule.

# (4)

Repair of a fence used for housing, raising, or feeding animals.

# (e)

Examples of items purchased by a qualifying or conditional farmer from a retailer that are subject to the sales or use tax, pursuant to G.S. 105-164.4, include:

# (1)

lawn mowers;

# (2)

snow plows;

# (3)

oil and fuel storage tanks, mobile or stationery, and their fittings;

# (4)

drainage tile;

# (5)

paint, cleaning compounds and brushes;

# (6)

snap bean graders;

# (7)

all-terrain vehicles not used primarily in farming operations;

# (8)

tools for maintaining machinery and equipment;

# (9)

sickle grinders;

# (10)

tobacco balers; and (11) ventilators that are part of a building or structure that have no moving parts and are installed in tobacco barns, other than bulk tobacco barns.

# (f)

The items listed in Paragraphs (a), (b), and (c) or this Rule must be purchased in accordance with G.S. 105-164.13E and G.S. 105-164.28A in order to be exempt from sales and use tax; otherwise, the items purchased are subject to sales and use tax, pursuant to G.S. 105-164.4.

Last amended: Authority G.S. 105-164.3; 105-164.4; 105-164.6; 105-164.13E; 105-164.28; 105-164.28A; 105-262; 105-264; 105-467; 105-468; 105-469; 105-483; 105-498; 105-507.2; 105-509.1; 105-510.1; 105-511.3; 105-537; 105-538; Eff. February 1, 1976; Amended Eff. June 1, 2006; August 1, 1996; April 1, 1995; July 1, 1994; October 1, 1993; June 1, 1992; Readopted Eff. January 1, 2024.

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