N.J.A.C. 18:24-19.3 - Scope of Exemption

(a) The exemption provided by N.J.S.A. 54:32B-8.16 applies to the purchases of:

1. Tangible personal property;

2. Production services; and

3. Conservation services.

(b) The exemption applies only when the property or service is purchased for use or consumption directly and primarily at a farming enterprise in the production and handling and preservation of agricultural or horticultural commodities for sale.

(c) The exemption provided by N.J.S.A. 54:32B-8.16 applies only to purchases by the farmer of property or services to be used in that farmer's own farming enterprise.

1. The exemption does not apply to purchases by a contractor of tangible personal property to be installed on a customer's farm premises or consumed during the work performed by the contractor on that property.

2. The exemption does not apply to purchases of items used by a service provider in rendering services to a farmer, regardless of whether the services rendered will be exempt.

(d) The exemption does not apply to purchases of the following categories of tangible personal property:

1. Automobiles;

2. Energy; and

3. Materials used to construct a building or structure, with the following exceptions:

i. Silos;

ii. Greenhouses;

iii. Grain bins; and

iv. Manure handling facilities.