Navigate Up
Sign In
Last Updated: 3/4/2013

Grain Hopper Tanks and Bins

Contact Us

Grain hopper tanks and bins do not qualify as exempt farm machinery and are generally taxable.

Grain hopper tanks and bins are not grain dryers (which are exempt). This is true even if some drying occurs in the grain hopper tanks and bins, or if there are component parts such as ladders connecting the bin to a grain dryer. (Custom Ag Service of Montevideo, Inc. v. Commissioner of Revenue, 728 N.W.2d 910 (Minn. 2007))

The purchase of a grain hopper tank or bin is taxable unless they are sold installed because the installation is considered an improvement to real property. In that case, the contractor (installer) does not charge sales tax on the installed tank or bin. But the installer must pay sales tax on the cost of any materials and supplies used to install the item(s).‚Äč

For more information, see Fact Sheet 106, Farm Machinery and Minnesota Statutes 297A.61, subd. 12.