CHAPTER 10-46E
EXCISE TAX ON FARM MACHINERY, FARM ATTACHMENT UNITS, AND IRRIGATION EQUIPMENT
10-46E-1 Gross receipts tax imposed--Farm machinery, attachment units, and irrigation equipment--Sale, resale, or lease--Rate--Trade-ins.
10-46E-2 Tax imposed on use, storage, and consumption of farm machinery, attachment units, and irrigation equipment purchased or leased for use in state--Rate.
10-46E-3 Tax imposed on use, storage, and consumption of farm machinery, attachment units, and irrigation equipment not originally purchased for in-state use--Rate--Trade-ins--Exemption.
10-46E-4 Farm machinery defined.
10-46E-5 Farm machinery, attachment units, and irrigation equipment sold at public auction.
10-46E-6 Tax collection and administration.
10-46E-7 Filing of returns and payment of tax due.
10-46E-8 Application of chapters 10-45 and 10-46.
10-46E-9 Revenue deposited in general fund.
10-46E-10 Rental of fertilizer and pesticide devices exempt--Conditions.
10-46E-11 Promulgation of rules.
10-46E-12 Prohibited acts--Misdemeanor or felony.
10-46E-13 Credit for sales, use, or gross receipts tax paid to another state or its political subdivisions--Reciprocity.
10-46E-1. Gross receipts tax imposed--Farm machinery, attachment units, and irrigation equipment--Sale, resale, or lease--Rate--Trade-ins.
There is hereby imposed an excise tax of four and two-tenths percent on the gross receipts from the sale, resale, or lease of farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes. However, if any trade-in or exchange of used farm machinery, attachment units, and irrigation equipment is involved in the transaction, the excise tax is only due and may only be collected on the cash difference.
Source: SL 2006, ch 58, § 1, eff. Apr. 1, 2006; SL 2016, ch 65, § 15, eff. June 1, 2016; SL 2023, ch 32, § 15.
Effective July 1, 2027
10-46E-1. Gross receipts tax imposed--Farm machinery, attachment units, and irrigation equipment--Sale, resale, or lease--Rate--Trade-ins.
There is hereby imposed an excise tax of four and one-half percent on the gross receipts from the sale, resale, or lease of farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes. However, if any trade-in or exchange of used farm machinery, attachment units, and irrigation equipment is involved in the transaction, the excise tax is only due and may only be collected on the cash difference.
Source: SL 2006, ch 58, § 1, eff. Apr. 1, 2006; SL 2016, ch 65, § 15, eff. June 1, 2016; SL 2023, ch 32, §§ 15, 19.
10-46E-2. Tax imposed on use, storage, and consumption of farm machinery, attachment units, and irrigation equipment purchased or leased for use in state--Rate.
An excise tax is hereby imposed on the privilege of the use, storage, and consumption in this state of farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes purchased or leased for use in this state at the same rate of the purchase price of said property as imposed pursuant to § 10-46E-1.
Source: SL 2006, ch 58, § 2.
10-46E-3. Tax imposed on use, storage, and consumption of farm machinery, attachment units, and irrigation equipment not originally purchased for in-state use--Rate--Trade-ins--Exemption.
An excise tax is imposed at the same rate as imposed by § 10-46E-1 on the privilege of the use, storage, or consumption in this state of farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes not originally purchased for use in this state, but thereafter used, stored, or consumed in this state, at the same rate as provided in § 10-46E-1 and imposed on the fair market value of the property at the time it is brought into this state. However, if any trade-in or exchange of used farm machinery, attachment units, and irrigation equipment is involved in the transaction, the excise tax is only due and may only be collected on the cash difference. The use, storage, or consumption of farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes that is more than seven years old at the time it is brought into the state by the person who purchased such property for use in another state is exempt from the tax imposed by this chapter.
Source: SL 2006, ch 58, § 3.
10-46E-4. Farm machinery defined.
For purposes of this chapter, farm machinery, includes all-terrain vehicles of three or more wheels used exclusively by the purchaser for agricultural purposes on agricultural land. The purchaser shall sign and deliver to the seller a statement that the all-terrain vehicle will be used exclusively for agricultural purposes.
Source: SL 2006, ch 58, § 4.
10-46E-5. Farm machinery, attachment units, and irrigation equipment sold at public auction.
Farm machinery, attachment units, and irrigation equipment, other than replacement parts, sold at public auction shall be taxed pursuant to § 10-46E-1 without regard to its intended use.
Source: SL 2006, ch 58, § 5, eff. Apr. 1, 2006; SL 2015, ch 67, § 5.
10-46E-6. Tax collection and administration.
The tax imposed by § 10-46E-1 shall be collected and administered by the Department of Revenue.
Source: SL 2006, ch 58, § 6, eff. Apr. 1, 2006; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-46E-7. Filing of returns and payment of tax due.
Any person who holds a license issued pursuant to this chapter or who is a person whose receipts are subject to the tax imposed by this chapter shall, except as otherwise provided in this section, file a return, and pay any tax due, to the Department of Revenue on or before the twentieth day of the month following each monthly period. The return shall be filed on forms prescribed and furnished by the department.
If the person remits the tax by electronic transfer to the state, the person shall file the return by electronic means on or before the twentieth day of the month following each period and remit the tax on or before the twenty-fifth day of the month following each period.
The secretary may require or allow a person to file a return, and pay any tax due, on a basis other than monthly and the return and remittance is due the twentieth day of the month following the reporting period or at time otherwise determined by the secretary.
The secretary of revenue may grant an extension of not more than five days for filing a return and remittance.
Unless an extension is granted, penalty or interest under § 10-59-6 shall be paid if a return or remittance is not made on time.
Source: SL 2006, ch 58, § 7, eff. Apr. 1, 2006; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2017, ch 65, § 6.
10-46E-8. Application of chapters 10-45 and 10-46.
Where applicable and not inconsistent with this chapter, the provisions of chapters 10-45 and 10-46, including the exemption, definition, administrative, collection, and enforcement provisions, including penalty and interest, are applicable to the tax imposed by this chapter.
Source: SL 2006, ch 58, § 8.
10-46E-9. Revenue deposited in general fund.
The revenue from the tax imposed by this chapter shall be deposited in the general fund.
Source: SL 2006, ch 58, § 9.
10-46E-10. Rental of fertilizer and pesticide devices exempt--Conditions.
There are exempted from the tax imposed by this chapter, gross receipts from the rental of devices primarily used to apply fertilizers and pesticides as defined in § 38-20A-1, for agricultural purposes, if the tax imposed by this chapter was paid upon the original purchase of the device.
Source: SL 2006, ch 58, § 10.
10-46E-11. Promulgation of rules.
The secretary of revenue may promulgate rules pursuant to chapter 1-26 concerning:
(1) Licensing, including bonding and filing license applications;
(2) The filing of returns and payment of the tax;
(3) Determining the application of the tax and exemptions;
(4) Taxpayer record-keeping requirements;
(5) Determining auditing methods; and
(6) Determining the age and value of the farm machinery, attachment units, and irrigation equipment brought into this state.
Source: SL 2006, ch 58, § 11, eff. Apr. 1, 2006; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
10-46E-12. Prohibited acts--Misdemeanor or felony.
Any person who:
(1) Makes any false or fraudulent return in attempting to defeat or evade the tax imposed by this chapter is guilty of a Class 6 felony;
(2) Fails to pay tax due under this chapter within thirty days from the date the tax becomes due is guilty of a Class 1 misdemeanor;
(3) Fails to keep the records and books required by this chapter or refuses to exhibit these records to the secretary of revenue or the secretary's agents for the purpose of examination is guilty of a Class 1 misdemeanor;
(4) Fails to file a return required by this chapter within thirty days from the date the return is due is guilty of a Class 1 misdemeanor;
(5) Willfully violates any rule of the secretary of revenue for the administration and enforcement of the provisions of this chapter is guilty of a Class 1 misdemeanor; or
(6) Violates either subdivision (2) or subdivision (4) two or more times in any twelve-month period is guilty of a Class 6 felony.
For purposes of this section, the term, person, includes an officer, member, member-manager, partner, general partner, or limited partner of an entity organized pursuant to Title 47 or 48 who has control or supervision of, or is charged with the responsibility for, making tax returns or payments pursuant to this chapter.
Source: SL 2006, ch 58, § 12, eff. Apr. 1, 2006; SL 2011, ch 1 (Ex. Ord. 11-1), § 35, eff. Apr. 12, 2011.
10-46E-13. Credit for sales, use, or gross receipts tax paid to another state or its political subdivisions--Reciprocity.
The amount of any use tax imposed with respect to the sale or lease of farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes shall be reduced by the amount of any sales, use, or gross receipts tax previously paid by the taxpayer with respect to the property on account of liability to another state or its political subdivisions. If the sales, use, or gross receipts tax of the other state is less than the tax of this state, the taxpayer is liable for the payment of the balance to this state. However, no credit may be given under this section if that state does not reciprocally grant a credit for taxes paid on similar tangible personal property.
Source: SL 2007, ch 63, § 1; SL 2015, ch 67, § 6.
