The following discussion provides tax reporting responsibilities to businesses selling goods to farmers.
Sales or rentals of items, including those listed below, to farmers are subject to B&O tax under the retailing classification. Sellers must collect sales tax unless purchases are specifically exempt by law. (For more information, see sales tax exemptions.)
- Irrigation systems
- Cleaning materials
Sales of the following items to farmers, for the purpose of producing for sale any agricultural product, are subject to B&O tax under the wholesaling classification:
- Agents for enhanced pollination (including insects such as bees)
- Spray materials
- Chemical sprays or washes sold to farmers or other persons for post-harvest treatment of fruit for the prevention of scald, fungus, mold, or decay.
- Containers, packaging, and wrappers that are sold by the farmer along with the agricultural product to be contained therein.
The seller must document wholesale sales by retaining a copy of the buyer's reseller permit or a Farmers' Certificate for Wholesale Purchases and Sales Tax Exemptions.