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Agricultural and Farming Guide
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Animals

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Sales of Animals

Some animal sales are taxable and some are exempt, depending on the type of animal and how it is used. Several services and items purchased for certain animals are also exempt from tax.

Taxable Animals

Sales and purchases of the following animals are taxable:

  • Breeding animals (unless the offspring will be exempt)
  • Farm dogs used for security purposes
  • Farm working stock, including mules, oxen, and herd dogs
  • Pets
  • Show animals

Nontaxable Animals

Sales and purchases of the following animals are not taxable:

Agricultural animalsCervidaeRatitaeFur-bearing animals

Raised for production of fiber, meat, and animal byproducts for sale or as breeding stock.

Examples:

  • Cattle
  • Fish
  • Goats
  • Honey bees
  • Llamas
  • Poultry
  • Sheep
  • Swine
  • Any other animals raised for sale

Must be fenced in, registered with the Board of Animal Health, and raised for production of fiber, meat, and animal byproducts for sale or as breeding stock.

Examples:

  • Caribou
  • Elk
  • Moose
  • Mule deer
  • Muntjac
  • Reindeer
  • White-tailed deer

Raised for production of fiber, meat, and animal byproducts for sale or as breeding stock.

Examples:

  • Emus
  • Ostriches
  • Rheas

Must be second generation or later and raised in captivity for sale.

Examples:

  • Chinchilla
  • Fisher
  • Fitch
  • Fox
  • Karakul
  • Marten
  • Mink
  • Nutria


Breeding Stock

Breeding stock are not taxable if the offspring will not be taxable (see above list). Breeding and stud fees are not taxable.

Examples:

  • The sale of a breeder rabbit to a person who sells rabbits for food is not taxable.
  • The sale of a breeder rabbit to a person who sells rabbits as pets is taxable.
  • The sale of a dog or cat breeding stock is always taxable since the offspring are meant to be sold as pets.

Horses

All horses are exempt from sales tax including racehorses, working stock, or pets. Related items and services are not taxable if used or consumed in breeding, boarding, keeping, owning, and raising horses.

Note: Machinery, equipment, tools, and other durable items are taxable if used in breeding, raising, grooming, owning, boarding, and keeping horses. 

For more information, see Veterinary Practice.

Research Animals

Sales and purchases of animals used for research and development are not taxable.

Artificial Insemination

Costs related to artificially inseminating agricultural animals are not taxable, including the following items:

  • Disposable inseminating gloves and catheters
  • Liquid nitrogen used to process agricultural semen
  • Semen

However, the following items are taxable:

  • Charts
  • Office records
  • Reusable inseminating gloves and catheters

Feed

Feed, feed additives, and feed supplements for agricultural animals are not taxable. However, feed for other animals may be taxable. See the table below for more information.

What type of animal is the feed for?Is it taxable?
Agricultural animals raised for retail saleNo
Agricultural animals raised for your own consumptionYes
Breeding stockNo
Farm working stockNo
Poultry raised for retail or your own consumptionNo
Pets raised for saleNo
Pets, not for saleYes

Miscellaneous Items

When the following items are used in qualifying agricultural production activities, they are exempt from tax:

  • Bedding
  • Hay

Veterinary Medicine and Services

Veterinary services, drugs, and medicines for agricultural and other tax-exempt animals are not taxable. Examples include:

  • Calf boluses
  • Dehorning paste
  • Foot rot spray
  • Mastitis tubes
  • Terramycin powder

However, medicine and supplies for pets are taxable.

For more information, see Veterinary Practice.