SECTION .5200 ‑ BABY CHICKS AND POULTS

 

17 NCAC 07B .5201          CHICKS: EGGS: EXEMPTION

The following sales are exempt from tax:

(1)           sales of baby chicks and poults to poultry farmers, egg producers and hatcheries for commercial poultry or egg production;

(2)           sales of eggs to be used in hatching baby chicks and poults which will be sold or used for commercial poultry or egg production;

(3)           all sales of eggs, baby chicks and poults for resale, irrespective of by whom sold;

(4)           sales of eggs, baby chicks and poults by egg producers and poultry farmers when such sales are made by them in their capacity as producers; Generally, hatcheries do not qualify as producers of farm products within the provisions of G.S. 105‑164.13(4b).  Hatchery sales which are not exempt under Subparagraphs (1), (2) or (3) of this Rule are subject to the applicable statutory state and local sales or use tax.

 

History Note:        Authority G.S. 105-164.4; 105‑164.13; 105‑262; Article 39; Article 40; Article 42; Article 43;

Article 44;

Eff. February 1, 1976;

Amended Eff. June 1, 2006; October 1, 1993; October 1, 1991.