Current through Register Vol. 49, No. 18, September 16, 2024
Pesticides, Herbicides and Fertilizers
PURPOSE: Sections 144.030.2(1), (22), and (32), RSMo,
exempt the sales of certain grains, seed, pesticides, limestone, fertilizer and
herbicides. This rule explains the requirements that must be met in order to
qualify for these exemptions. Section 144.020.1(3), RSMo, taxes certain utility
services. This rule explains the application of this taxing provision for sales
to agricultural consumers.
(1) In general, the sale of grains to be
converted into foodstuffs or seed, and limestone, fertilizer, and herbicides
used in connection with the growth or production of crops, livestock or poultry
is exempt from tax.
(2) Definition
of Terms.
(A) Herbicides-Chemical substances
used to destroy or inhibit the growth of plants, especially weeds.
(B) Livestock-See
12 CSR
10-110.900.
(C) Pesticides-Chemicals used to kill pests,
especially insects. Pesticides include adjuvants such as crop oils,
surfactants, wetting agents and other pesticide carriers used to improve or
enhance the effect of a pesticide and the foam used to mark the application of
pesticides and herbicides for the production of crops, livestock or
poultry.
(3) Basic
Application of Tax.
(A) The sale of grain to
be converted into foodstuffs ultimately sold in processed form at retail is
exempt.
(B) The sale of seed, lime
or fertilizer used in producing crops that will be sold at retail or will be
fed to livestock or poultry to be sold ultimately in processed form at retail
is exempt.
(C) Sales of pesticides
or herbicides used in the production of crops, orchards, aqua-culture,
livestock or poultry are exempt.
(D) Seed, pesticides and fertilizers sold for
nonagricultural use are subject to tax. Sales of fertilizer for lawns,
shrubbery and similar ornamental uses and seeds for ornamental purposes are
examples of sales subject to tax.
(E) The sale of electricity, water, and gas
used for agricultural production is exempt.
(4) Examples.
(A) A pesticide dealer sells pesticides to an
orchard to spray on the fruit trees to kill insects. The sale of the pesticide
is not subject to tax.
(B) An
agricultural chemical dealer sells foam marker to a farmer to aid in
determining where herbicides have been sprayed on crops. The sale of the foam
marker is not subject to tax.
(C) A
seed dealer sells seed, pesticides and fertilizer to a construction company for
use on a construction site. These sales are subject to tax.
(D) A pesticide dealer sells fly spray for
dairy cattle and rat and mouse poison for use in the dairy barn. The sale of
the fly spray is not subject to tax. The sale of the rat and mouse poison is
not subject to tax because it is used in the production of an agriculture
product.
*Original authority: 144.270, RSMo 1939, amended 1941,
1943, 1945, 1947, 1955, 1961.
