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Last Updated: 4/27/2017

Animals

Sales of animals

Some animal sales are taxable and some are exempt, depending on the type of animal and how it is used. Several services and items purchased for certain animals are also exempt from tax.

Taxable animals

Sales and purchases of the following animals are taxable:

  • Breeding animals (unless the offspring will be exempt)
  • Farm dogs used for security purposes
  • Farm working stock, including mules, oxen, and herd dogs
  • Pets
  • Show animals

Nontaxable animals

Sales and purchases of the following animals are not taxable:

Animal Type

Examples

​Agricultural animals

  • Cattle
  • Fish
  • Goats
  • Honey bees
  • Llamas
  • Poultry
  • Sheep
  • Swine
  • Any other animals raised for sale

Cervidae – Members of the deer and elk family raised for producing fiber, meat, and animal byproducts for sale or as breeding stock. Cervidae must be fenced in and registered with the Board of Animal Health.

  • Caribou
  • Elk
  • Moose
  • Mule deer
  • Muntjac
  • Reindeer
  • White-tailed deer

Ratitae – If raised for production of fiber, meat, and animal byproducts for sale or as breeding stock.

  • Emus
  • Ostriches
  • Rheas

Fur-bearing animals – If second generation or later and raised in captivity for sale.

  • Chinchilla
  • Fisher
  • Fitch
  • Fox
  • Karakul
  • Marten
  • Mink
  • Nutria

Breeding stock

Breeding stock are not taxable if the offspring will not be taxable (see above list). Breeding and stud fees are not taxable. 

Examples

  • The sale of a breeder rabbit to a person who sells rabbits for food is not taxable.
  • The sale of a breeder rabbit to a person who sells rabbits as pets is taxable.
  • The sale of a dog or cat breeding stock is always taxable since the offspring are meant to be sold as pets. 

Horses

All horses are exempt from sales tax including racehorses, working stock, or pets. Related items and services are not taxable if used or consumed in breeding, boarding, keeping, owning, and raising horses.

Note: Machinery, equipment, tools, and other durable items are taxable if used in breeding, raising, grooming, owning, boarding, and keeping horses. 

For more information, see Fact Sheet 144, Veterinary Practice.

Research animals

Sales and purchases of animals used for research and development are not taxable.

Animal services and supplies

Artificial insemination

Costs related to artificially inseminating agricultural animals are not taxable, including the following items:

  • Disposable inseminating gloves and catheters
  • Liquid nitrogen used to process agricultural semen
  • Semen

However, the following items are taxable:

  • Charts
  • Office records
  • Reusable inseminating gloves and catheters 

Feed

Feed, feed additives, and feed supplements for agricultural animals are not taxable. However, feed for other animals may be taxable. See the table below for more information.

What type of animal is the feed for?

Is it taxable?

Agricultural animals raised for retail sale

​No

Agricultural animals raised for your own consumption

​Yes

Breeding stock

​No

Farm working stock

​No

Poultry raised for retail or your own consumption

​No

Pets raised for sale

​No

Pets, not for sale

​Yes

Miscellaneous items

When the following items are used in qualifying agricultural production activities, they are exempt from tax:

  • Bedding
  • Hay

Veterinary medicine and services

Veterinary services, drugs, and medicines for agricultural and other tax-exempt animals are not taxable. Examples include:

  • Calf boluses
  • Dehorning paste
  • Foot rot spray
  • Mastitis tubes
  • Terramycin powder

However, medicine and supplies for pets are taxable.

For more information, see Fact Sheet 144, Veterinary Practice.

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