Questions and Answers
Christmas Tree Farms
Kansas Retailers' Sales Tax
Machinery and Equipment Purchases
CHRISTMAS TREE FARMS
TREE SALES-TAXABLE K.S.A. 79-3603
all sales of farm machinery and equipment or aquaculture machinery and equipment, repair and replacement parts therefor and services performed in the repair and maintenance of such machinery and equipment. For purposes of this subsection the term "farm machinery and equipment or aquaculture machinery and equipment" shall include machinery and equipment used in the operation of Christmas tree farming and shall
not include any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer
, as such terms are defined by K.S.A. 8-126 and amendment thereto. Each purchaser of farm machinery and equipment or aquaculture machinery and equipment exempted herein must certify in writing on the copy of the invoice or sales ticket to be retained by the seller that the farm machinery and equipment or aquaculture machinery and equipment purchased will be used only in farming, ranching or aquaculture production. Farming or ranching shall include the operation of a feedlot and farm and ranch work for hire.
K.A.R. 92-19-32(b)(1) states in part: "Farm machinery and equipment" shall mean machinery and equipment purchased by a farmer or rancher...which is ordinary and necessary for the growing or raising of agricultural products. Farm machinery and equipment shall not include disposable supplies, buildings, building materials, silos, fence, fencing materials, land, all terrain vehicles, passenger motor vehicles, trucks, truck tractors, trailers, semitrailers, and pole trailers, other than a farm trailer..."
House bill 3046 defines "Implement of husbandry as: "every vehicle designed or adapted and used exclusively for agricultural operations, including feedlots, and only incidentally moved or operated upon the highways. Such term shall include, but not be limited to:
(1) A farm tractor;
(2) a self-propelled farm implement;
(3) a fertilizer spreader, nurse tank or truck permanently mounted with a spreader used exclusively for dispensing or spreading water, dust or liquid fertilizers or agricultural chemicals, as defined in K.S.A. 2-2202, and amendments thereto, regardless of ownership..."
: Christmas tree farmers in the business of selling Christmas trees need to be registered to collect sales tax. The sale is also subject to the local tax in addition to the state tax.
References: Notice issued July 1, 1988 to Christmas tree association members.
See also FARM MACHINERY AND EQUIPMENT
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