California – New Tax Guide for the Agricultural Industry

SALT Report 2938 – The California State Board of Equalization released a tax guide for the agricultural industry that is designed to help these taxpayers better understand the issues specific to this industry as well as to those who sell farm related supplies.  The publication provides guidance regarding the registration, reporting, and record keeping requirements under California’s state and local sales and use tax laws.

The tax guide is divided into the following sections:

Getting Started – This section provides the resources necessary to register a business, file tax returns, maintain business accounts, and apply for licenses.  This section also discusses the requirement for those who sell farm related supplies to register for additional tax and fee programs, such as the diesel fuel tax program, the California tire fee, and the underground storage tanks maintenance fee.

Farming Exemptions – This section discusses the exemptions available to this industry and the certificates you will need to claim an exemption.

Industry Topics – This section discusses the general sales and use tax laws related to agriculture.  In addition, the publication provides further detail regarding the application of sales and use tax to sales of animals, sales of feed, and drugs and medicines that will be administered to animals.

Resources – This section provides a variety of information such as, links to BOE sponsored videos and seminars, forms and publications, statutory and regulatory information, permit verifications, BOE office locations, city and county tax rates, and access to live help from BOE customer service representatives.

For Further Information

California State Board of Equalization – Tax Guide for the Agricultural Industry