Was feed for horses, cattle, swine, and other specifically named livestock exempt from Florida sales tax regardless of why the animals were kept?

Plain-English summary

The Florida Department of Revenue ruled that feed for specifically listed livestock was exempt from sales tax regardless of the purpose for which the animal was raised or kept. Horse feed therefore qualified even when the horse was not used for a commercial purpose.

The requester operated a retail store selling animal feed, supplies, apparel, hardware, and related goods. Its feed products included hay, alfalfa, corn, and other items normally consumed by livestock.

Specifically named animals qualified regardless of use

Section 212.08(7)(d) exempted feed for poultry, ostriches, and livestock, including racehorses and dairy cows. Section 212.02(29) specifically named equine, bovine, and swine animals and included goats, sheep, mules, horses, hogs, cattle, and ostriches.

The Department agreed that the words "for commercial purposes" did not limit those animals specifically listed by name. Their feed remained exempt whether they were kept for business, recreation, or domestic purposes.

Unlisted grazing animals needed a commercial purpose

The commercial-purpose language instead modified "other grazing animals." The ruling gave deer, elk, and buffalo as examples that qualified when raised on a farm for commercial purposes.

The Department also said "feed" included hay, oats, corn, alfalfa, range pellets, molasses, salt and mineral blocks, and similar products.

What this means for you

Feed and farm-supply retailers

Classify the animal first. Feed for an animal specifically named in the statutory livestock definition did not depend on the purchaser proving a commercial use under this ruling.

Horse and livestock owners

The exemption was not limited to racehorses, dairy herds, or income-producing animals. The Department treated specifically listed livestock the same regardless of purpose.

Sellers of feed for less common grazing animals

For deer, elk, buffalo, or another unlisted grazing animal, document whether the animal is being raised on a farm for commercial purposes.

Common questions

Q: Was horse feed exempt only for racehorses?
A: No. Horses were specifically listed livestock, so their feed was exempt regardless of purpose.

Q: Did the same rule apply to cattle and swine?
A: Yes. They were among the specifically covered animal classes.

Q: What feed products did the ruling identify?
A: Hay, oats, corn, alfalfa, range pellets, molasses, salt and mineral blocks, and similar products.

Q: What did "for commercial purposes" modify?
A: The Department read it as modifying unlisted "other grazing animals," not the animals specifically named.

Q: Were deer, elk, and buffalo always covered?
A: The ruling treated them as covered when raised on a farm for commercial purposes.

Citations and references

• Fla. Stat. § 212.08(7)(d) — exemption for feed for poultry, ostriches, and livestock
• Fla. Stat. § 212.02(29) — livestock definition applied by the Department

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 05A-025

Original ruling text

SUMMARY
QUESTION:
The Taxpayer is seeking guidance concerning whether feed for livestock, including horse feed, is exempt from sales
tax, notwithstanding the purpose for which the animals are used.
ANSWER - Based on Facts Below:
The term "livestock," as defined in Section 212.02(29), F.S., includes specific animals such as horses, cows, and
swine, regardless of the purpose for which they are raised. Therefore, feeds for these specific animals are exempt
from sales tax, notwithstanding the purpose for which the animals are raised.

June 3, 2005

Re: Technical Assistance Advisement 05A-025
Sales and Use Tax - Feed for Livestock
Dear:
This response is in reply to your letter dated February 24, 2005, 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. An examination of your petition has established that you have complied with the statutory and
regulatory requirements for issuance of a TAA. Therefore, the Department is hereby granting your request for
issuance of a TAA.

As stated in your request for advisement, the Taxpayer operates a retail mercantile establishment that sells animal
feed, supplies, apparel, hardware, and other related merchandise. The animal feed includes hay, alfalfa, corn, and
other products normally sold for consumption by livestock. You are seeking guidance concerning whether feed for
livestock, including horse feed, is exempt from sales tax, notwithstanding the purpose for which the animals are used.
As provided in Section 212.08(7)(d), F.S., feeds for poultry, ostriches, and livestock, including racehorses and dairy
cows, are exempt from the sales tax imposed by Chapter 212, F.S. Section 212.02(29), F.S., defines livestock as, "...
all animals of the equine, bovine, or swine class, including goats, sheep, mules, horses, hogs, cattle, ostriches, and
other grazing animals for commercial purposes. The term livestock shall also include fish raised for commercial
purposes."
It is your assertion that term the "livestock," as defined in Section 212.02(29), F.S., includes all of the specific animals
listed (e.g., swine, horses, mules, and cows), regardless of whether such animals are raised for commercial or
domestic purposes. You contend the phrase, "for commercial purposes," modifies the phrase "other grazing animals"

and does not apply to the specific animals listed by name.
The Department of Revenue agrees that the term "livestock," as defined in Section 212.02(29), F.S., includes specific
animals such as horses, cows, and swine, regardless of the purpose for which they are raised. Therefore, feeds for
these specific animals are exempt from sales tax, notwithstanding the purpose for which the animals are raised.
Additionally, the term "feed" includes products such as hay, oats, corn, alfalfa, range pellets, molasses, salt and
mineral blocks, and similar products.
With regard to the phrase "for commercial purposes," it is our determination that that term modifies the phrase "other
grazing animals" that are not specifically listed. The term "other grazing animals" includes animals such as deer, elk,
or buffalo that are raised on a farm for commercial purposes.
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. Confidential
information must be deleted before public disclosure. In an effort to protect confidentiality, we request you provide the
undersigned with an edited copy of your request for Technical Assistance Advisement, the backup material and this
response, deleting names, addresses and any other details which might lead to identification of the taxpayer. Your
response should be received by the Department within 15 days of the date of this letter.
Sincerely,
Richard R. Parsons
Tax Law Specialist
Technical Assistance & Dispute Resolution
(850) 922-4838
Ctrl. No. 13378