Real and Personal Property Used for Placing Farm Crops in Storage

# (1)

(1) Definitions:

(a) "Primary" is the leading use or the use involving the highest percentage of time, including time held

for use, relative to all the various uses.

(b) "Processing" is altering the crop in any way such as: washing, icing, sorting, grading, waxing, boxing, slicing, or cutting.

(c) "Storage of farm crops" refers to the holding area in which a product is placed before processing begins.

# (2)

(2) Personal property and real property machinery and equipment used to place a farm crop in storage are exempt from taxation. However, once processing of the crop is begun, it is no longer a crop, but a product. When the same machinery and equipment are used for both placing in storage and processing the primary use is what determines its assessment status.