23 Va. Admin. Code § 10-340-30
Farmers raising poultry and livestock are exempt from state intangible personal property tax. This exemption does not apply to businesses which enter into contracts with farmers for the production of poultry or livestock when such businesses (a) furnish the poultry or livestock, feed and supplies to the farmers and (b) assume all financial risks, including all losses in the growing and marketing of such poultry or livestock. These businesses are subject to state intangible personal property tax except that poultry and livestock, while under production contract with farmers, are assessable locally as tangible personal property and not as a part of intangible personal property. Inventory of poultry processors is subject to intangible personal property tax and exempt from local taxation if (1) the processing significantly utilizes machinery or mechanical devices, (2) the processed poultry is ready for human consumption, except for cooking and (3) the poultry is sold to customers who are subject to wholesale merchants' license taxation.
23 Va. Admin. Code § 10-340-30
Statutory Authority
§§ 58.1-203 and 58.1-1102 of the Code of Virginia.