Ohio tax rules provide some broad categories of purchases that are tax exempt for farmers. The production of flowers and plants for sale as a business, either in the field or in a greenhouse is considered floriculture. Horticulture includes the production of vegetables, vegetable plants, fruits, or nursery stock and the operation of commercial vegetable greenhouses or nurseries. Agriculture is the cultivation of the soil for the purpose of producing grain, vegetables, and fruits, and it includes gardening or horticulture, together with the raising and feeding of cattle or stock for sale as a business. The tax rules further broaden the definition of farming to include agriculture, horticulture, and floriculture. Farming Definedįarming is defined as the occupation of tilling the soil for the production of crops and the raising of farm livestock, bees, or poultry as a business. For a farmer to claim exception or exemption, the farmer must be using the items or services in a manner eligible for the tax exemption. Since the majority of exceptions or exemptions from the Ohio sales or use taxes are based on the use of the items or services purchased, it would be difficult for the Department of Taxation to provide a list of taxable and exempt items or services. Currently, Ohio sales tax is charged on all sales of tangible personal property and services unless there is an exception to this tax. However, this does not make all purchases by farmers exempt. Farmers have been exempt from Ohio sales tax on purchases used for agricultural production for several decades.
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