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MADISON – The sales and use tax farming exemptions were expanded beginning on July 1, 2007, according to State Representative Terry Musser (R-Melrose). The sales and use tax exemption will now also apply for persons engaged in the business of Silviculture, and was effective on the same date.
The expansion is a result of 2005 WI Act 366. It expands the exemption to include lubricants, nonpowered equipment, and other tangible personal property, in addition to accessories, attachments, and parts. It also provides that items that are consumed or lose their identities in the business of farming are exempt.
Musser explained that prior to this change, state law exempted the following from sales and use taxes, when used exclusively and directly in the business of farming:
• Tractors and machines, including accessories, attachments, and parts.
• Various listed agricultural supplies, such as plants, livestock, feed, fertilizer, and pesticides, and electricity and fuel.
The definition of “farming” is expanded in the act to include Silviculture, the business of raising trees for timber, lumber and other wood products. This includes the logging of timber when the logging is conducted with respect to timber produced as a result of that person’s silviculture activity. It does not include pulp or sawmill operations.
Musser, who was a co-sponsor of the legislation, pointed out that these new exemptions for the farming and silviculture business will help those in the industry achieve more profits by decreasing operation expenses.
Additional information about these changes, including examples of items is provided in Publication 221. This publication is available at the Department of Revenue website, http://www.revenue.wi.gov/pubs/pb221.pdf.
Representative Musser welcomes your views on this or any state issue and may be contacted at State Capitol - Room 11 West, Madison WI 53702, 1-888-534-0092 or
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