Commercial fertilizer, agricultural crop protection products, and seed

From the 2024 DOR Tax Exemption Study

Home Education Industry Guides Agriculture Tax Guide Specific Activities Of Farmers Print Specific activities of farmers Beekeepers (Pollination) Sales of insects: The sale of insects such as leaf-cutter bees for the purpose of pollination to a farmer is subject to the wholesaling B&O tax. A farmers' exemption certificate , a copy of a valid reseller permit , or other approved exemption certificate must be given to the seller. However, sales of honey bee products by “eligible apiarists” are exempt from B&O tax. This exemption expired July 1, 2017. Pollination services: Beekeepers provide bees (usually honey bees) to farmers for the purpose of pollination. Generally, the income of the beekeeper is subject to B&O tax under the service and other activities classification, as a horticultural service. However income received by an eligible apiarist for providing bee pollination services is exempt from B&O tax. This exemption expired July 1, 2017. Sales/use tax exemptions Sales and use tax exemptions are provided for the following: Purchases of bees by an eligible apiarist. Purchases of feed used by an eligible apiarist in the raising of a bee colony used to make honey products. To docum