City and County of Denver, Colorado
Topic No. 51
LIVESTOCK, LIVESTOCK BEDDING/FEED
"Livestock" includes domestic animals raised for sale or profit which are kept on a farm. This definition includes, but is not limited to, horses, cattle, sheep, pigs, goats, poultry, and fish.
All sales and purchases of cattle, sheep, lambs, swine, and goats, and sales and purchases of horses for breeding purposes are specifically exempted in the DRMC.
Sales and purchases of other animals not exempted above would otherwise qualify for exemption if purchased for resale.
1. Jim's Feedlot purchases 100 calves from Farmer Joe intending to feed the calves until maturity and then sell them at a higher weight. Jim's purchase of the calves meets the livestock exemption and the transaction is not subject to sales or use tax. The same transaction also meets the wholesale exemption as it is a purchase for resale.
2. Fresh Fish Hatchery sells 2 tons of rainbow trout to Country Markets food store chain. Country Markets intends to sell the trout to consumers. This transaction does not meet the livestock exemption, but it does meet the wholesale exemption as a purchase for resale. No tax is due on this transaction.
The sale of straw or other bedding for use in the care of livestock is taxable.
The sale and purchase of feed for all livestock, which includes horses, poultry and fish, is exempt from sales/use tax.
1. Circle X Cattle Ranch grows corn to feed its cattle. Circle X had a bumper crop and sold its excess corn to the Bar X Cattle Company. Because all feed for livestock is exempt from taxation, this transaction is not subject to tax. As an added note, the initial purchase of the seed used by Circle X to grow corn would also be exempt from tax.
2. Nuclear Energy Corporation of America (NECA) uses the water runoff from its cooling tanks as a fish nursery. NECA buys fish food to feed to the hatchlings. This transaction meets the exemption for livestock feed and is not subject to sales or use tax.
RELATED TAX GUIDE TOPICS
Feed and Seeds
* DRMC Section 53-25(1). Imposition of tax.
* DRMC Section 53-26(5),(6). Exemptions.
* DRMC Section 53-96(1). Imposition of tax.
* DRMC Section 53-97(5),(6). Exemptions.
THE ABOVE INFORMATION IS A SUMMARY IN LAYMAN'S TERMS OF THE RELEVANT DENVER TAX LAW FOR THIS INDUSTRY OR BUSINESS SEGMENT. IT IS NOT INTENDED FOR LEGAL PURPOSES TO BE SUBSTITUTED FOR THE FULL TEXT OF THE DRMC AND APPLICABLE RULES AND REGULATIONS.