Section Tax 11.42 - Fertilizer blending, feed milling, and grain drying operations For purposes of s. 77.54(6) (bn), Stats., primarily engaged in fertilizer blending, feed milling, or grain handling operations does not include the planting, harvesting, and tilling of grain, but may include the custom farming services of grain drying.
Examples:
1) Individual operates a dairy farm and also grows corn and soybeans. Individual conducts corn and soybean drying operations on the farm with respect to corn and soybeans grown and harvested by Individual. Individual also mills corn, soybeans, and other grains into feed for Individual's dairy cattle. Individual's primary activity is operating a dairy farm and the grain drying and feed milling operations are conducted as an incident to Individual's grain growing and dairy farming activities. Individual is not a person described in s. 77.54(6) (bn), Stats.2) Business' primary business activity is the operation of a grain dryer. For a fee, Business will dry grain owned by farmers. Business is primarily engaged in "grain handling operations which include grain drying operations" for purposes of this section. Drying grain owned by a farmer for a fee is a "custom farming service" as defined in s. Tax 11.12(2) (b). Business' drying of a farmer's grain for a fee, while a "custom farming service," constitutes being engaged in "grain handling operations which include grain drying operations" for purposes of this section. Note: Section Tax 11.42 interprets s. 77.54(6) (am) 4 and 5., (bn), and (cn), Stats.
Wis. Admin. Code Department of Revenue Tax 11.42
Amended by, CR 16-054: cr. Register June 2018 No. 750, eff. 7/1/2018The interpretations in s. Tax 11.42 are effective under the general sales and use tax law on and after September 1, 1969, except that the exemption for fertilizer blending, feed milling, and grain drying operations became effective on April 19, 2014, pursuant to 2013 Wis. Act 324.