Was hay-grade baling twine exempt from Florida sales tax when a farmer used it for another agricultural purpose, such as staking tomatoes?

Plain-English summary

Hay-grade baling twine remained exempt when a farmer used it for qualifying agricultural production beyond baling hay. The twine had to be the same type or caliber appropriate for hay and had to contain, produce, or process an agricultural commodity.

The Department specifically said the exemption covered a tomato farmer using that twine to stake tomatoes.

What this means for you

The exemption followed the product's agricultural-grade character and its use in producing an agricultural commodity, not a requirement that every strand physically bind hay.

Common questions

Q: Was qualifying twine exempt only when baling hay? No.

Q: Could a tomato farmer use it tax free for stakes? Yes.

Q: Did any ordinary string qualify? The ruling addressed twine of the same type or caliber appropriate for baling hay.

Citations and references

• Fla. Stat. § 212.08(5)(a) — agricultural baling wire and twine exemption
• Fla. Stat. § 212.02(27) — agricultural commodity definition
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 01A-065

Original ruling text

SUMMARY

QUESTION: Whether baling twine, of the same durable type
quality as that used for baling hay, is exempt from sales
tax when used by a farmer for purposes other than baling
hay.

ANSWER - Based on Facts Below: Section 212.08(5)(a), F.S.,
provides an exemption for baling wire and twine used for
baling hay, when used by a farmer to contain, produce, or
process an agricultural commodity. Section 212.02(27),
F.S., defines an agricultural commodity as "horticultural,
aquacultural, poultry and farm products, and livestock and
livestock products".

It is the position of the Department that baling twine, of
the same type or caliber of twine appropriate for use in
baling hay, used by a farmer to contain, produce, or
process an agricultural commodity, qualifies for the
exemption under the provisions of Section 212.08(5)(a),
F.S. This includes, for example, such twine when used by a
tomato farmer to stake tomatoes.

Oct 16, 2001

Re: Technical Assistance Advisement 01A-065
Sales and Use Tax - Baling Twine Used by Farmers
F.E.I. Number: XX
Section 212.08, F.S.

Dear :

This response is in reply to your letter dated August 28, 2001,
requesting the Department's issuance of a Technical Assistance
Advisement ("TAA") pursuant to s. 213.22, F.S., and Chapter
12-11, F.A.C., regarding the referenced matter and parties.

You are seeking guidance concerning whether baling twine, of the

same durable type quality as that used for baling hay, is exempt
from sales tax when used by a farmer for purposes other than
baling hay.

Section 212.08(5)(a), F.S., provides an exemption for baling
wire and twine used for baling hay, when used by a farmer to
contain, produce, or process an agricultural commodity. Section
212.02(27), F.S., defines an agricultural commodity as
"horticultural, aquacultural, poultry and farm products, and
livestock and livestock products".

It is the position of the Department that baling twine, of the
same type or caliber of twine appropriate for use in baling hay,
used by a farmer to contain, produce, or process an agricultural
commodity, qualifies for the exemption under the provisions of
Section 212.08(5)(a), F.S. This includes, for example, such
twine when used by a tomato farmer to stake tomatoes.

This response constitutes a Technical Assistance Advisement
under s. 213.22, F.S. which is binding on the department only
under facts and circumstances described in the request for this
advice as specified in s. 213.22, F.S. Our response is
predicated on those facts and the specific situation summarized
above. You are advised that subsequent statutory or
administrative rule changes or judicial interpretations of the
statutes or rules upon which this advice is based may subject
similar future transactions to a different treatment than
expressed in this response.

You are further advised that this response, your request and
related backup documents are public records under Chapter 119,
F.S., and are subject to disclosure to the public under the
conditions of s. 213.22, F.S. Ordinarily, confidential
information, such as the identity of the person to whom an
advisement is issued, must be deleted before public disclosure.
In the situation in which a taxpayer association is seeking an
advisement on behalf of its members, having the identity of the
requesting association remain in the published advisement is
useful to those using the advisement for guidance. No specific
taxpayer information is included in an advisement issued to a
taxpayer association, and concerns about protecting proprietary

information are not present under such circumstances. However,
in light of statutory requirements as to confidentiality, a
taxpayer association must give its consent to the Department to
allow its name to be included in the published advisement. The
taxpayer association to which this advisement is issued has
given written consent to allow the disclosure of its identity.

Sincerely,

Richard R. Parsons
Tax Law Specialist
Technical Assistance & Dispute Resolution
(850) 922-4838

Ctrl. No. 46615