Virginia HB 1152: Sales and use tax; agricultural exemptions.

Bill Text

2022SESSION
INTRODUCED
22103515D
1 HOUSEBILLNO.1152
2 OfferedJanuary14,2022
3 A BILL to amend and reenact § 58.1-609.2 of the Code of Virginia, relating to sales and use tax;
4 agricultural exemptions.
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Patron––Ware
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7 ReferredtoCommitteeonFinance
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9 Be it enacted by the General Assembly of Virginia:
10 1. That §58.1-609.2 of the Code of Virginia is amended and reenacted as follows:
11 §58.1-609.2. Agricultural exemptions.
12 The tax imposed by this chapter or pursuant to the authority granted in §§ 58.1-605 and 58.1-606
13 shall not apply to the following:
14 1. Commercial feeds; seeds; plants; fertilizers; liming materials; breeding and other livestock; semen;
15 breeding fees; baby chicks; turkey poults; rabbits; quail; llamas; bees; agricultural chemicals; fuel for
16 drying or curing crops; baler twine; containers for fruit and vegetables; farm machinery; medicines and
17 drugs sold to a veterinarian provided they are used or consumed directly in the care, medication, and
18 treatment of agricultural production animals or for resale to a farmer for direct use in producing an
19 agricultural product for market; tangible personal property, except for structural construction materials to
20 be affixed to real property owned or leased by a farmer, necessary for use in agricultural production for
21 market and sold to or purchased by a farmer or contractor; and agricultural supplies provided the same
22 are sold to and purchased by farmers for use in agricultural production, which also includes beekeeping
23 and fish, quail, rabbit and worm farming for market. Notwithstanding the foregoing, for purposes of this
24 subsection, "tangible personal property" includes structural construction materials and environmental
25 control systems to be affixed or integrated into a commercial greenhouse structure, so long as such
26 materials and equipment have been specially ordered to meet the specifications of the commercial
27 greenhouse operator.
28 2. Every agricultural commodity or kind of seafood sold or distributed by any person to any other
29 person who purchases not for direct consumption but for the purpose of acquiring raw products for use
30 or consumption in the process of preparing, finishing, or manufacturing such agricultural or seafood
31 commodity for the ultimate retail consumer trade, except when such agricultural or seafood commodity
32 is actually sold or distributed as a marketable or finished product to the ultimate consumer. "Agricultural
33 commodity," for the purposes of this subdivision, means horticultural, poultry, and farm products,
34 livestock and livestock products, and products derived from bees and beekeeping.
35 3. Livestock and livestock products, poultry and poultry products, and farm and agricultural products,
36 when produced by the farmer and used or consumed by him and the members of his family.
37 4. Machinery, tools, equipment, materials or repair parts therefor or replacement thereof; fuel or
38 supplies; and fishing boats, marine engines installed thereon or outboard motors used thereon, and all
39 replacement or repair parts in connection therewith; provided the same are sold to and purchased by
40 watermen for use by them in extracting fish, bivalves or crustaceans from waters for commercial
41 purposes.
42 5. Machinery or tools or repair parts therefor or replacements thereof, fuel, power, energy or
43 supplies, and cereal grains and other feed ingredients, including, but not limited to, drugs, vitamins,
44 minerals, nonprotein nitrogen, and other supplements or additives, used directly in making feed for sale
45 or resale. Making of feed shall include the mixing of liquid ingredients.
46 6. Machinery or tools and repair parts therefor or replacements thereof, fuel, power, energy or
47 supplies, used directly in the harvesting of forest products for sale or for use as a component part of a
48 product to be sold. Harvesting of forest products shall include all operations prior to the transport of the
49 harvested product used for (i) removing timber or other forest products from the harvesting site, (ii)
50 complying with environmental protection and safety requirements applicable to the harvesting of forest
51 products, (iii) obtaining access to the harvesting site, and (iv) loading cut timber or other forest products
52 onto highway vehicles for transportation to storage or processing facilities.
53 7. Agricultural produce, as defined in § 3.2-4738, and eggs, as described in § 3.2-5305, raised and
54 sold by an individual at local farmers markets and roadside stands, when such individual's annual
55 income from such sales does not exceed $2,500.
56 2. That the provisions of this act shall apply to purchases made on or after July 1, 2020.
INTRODUCED
HB1152
7/29/22
6:56