17 NCAC 07B .4002          FERTILIZER AND SEEDS

(a)  Sales of seeds to farmers for agricultural purposes are exempt from sales and use tax.  The term "seeds" means seeds in their generally accepted sense and includes flower seed, sets, tubers, roots, tobacco plants, tomato plants, pepper plants, eggplants, potato plants, and other small plants that are raised in beds or hothouses for transplanting.  The term "seeds" does not include potted plants, trees, shrubs, cut flowers, and other larger plants.

(b)  Sales of the following to farmers are exempt from sales and use tax:

(1)           Commercial fertilizer;

(2)           Lime;

(3)           Land plaster;

(4)           Plastic mulch;

(5)           Plant bed covers;

(6)           Potting soil; and

(7)           Baler twine.

(c)  The term "agricultural," as used in this Rule, means cultivating the soil for the production of crops for sale in the regular course of business; the production of animals for sale in the regular course of business; or the holding and management of animals for the production of animal products for sale in the regular course of business.  It includes beekeepers, dairy operators, poultry farmers, egg producers, livestock farmers, nurserymen, greenhouse operators, orchardmen and other persons engaged in the commercial production of plants and animals as described in this Rule for sale in the regular course of business.  It does not include someone who merely cultivates the soil for the ornamental effects nor does it include home gardening or commercial activities other than the types described in this Rule.

 

History Note:        Authority G.S. 105-164.13; 105-262;

Eff. February 1, 1976;

Amended Eff. August 1, 2009; June 1, 2006; August 1, 2003; August 1, 1996; April 1, 1986; February 1, 1986.