                                 CODE OF VIRGINIA

AGRICULTURAL EXEMPTIONS (§ 58.1-609.2)

The tax imposed by this chapter or pursuant to the authority granted in §§
58.1-605 and 58.1-606 shall not apply to the following:

1. Commercial feeds; seeds; plants; fertilizers; liming materials; breeding and
other livestock; semen; breeding fees; baby chicks; turkey poults; rabbits;
quail; llamas; bees; agricultural chemicals; fuel for drying or curing crops;
baler twine; containers for fruit and vegetables; farm machinery; medicines and
drugs sold to a veterinarian provided they are used or consumed directly in the
care, medication, and treatment of agricultural production animals or for resale
to a farmer for direct use in producing an agricultural product for market;
tangible personal property, except for structural construction materials to be
affixed to real property owned or leased by a farmer, necessary for use in
agricultural production for market and sold to or purchased by a farmer or
contractor; and agricultural supplies provided the same are sold to and
purchased by farmers for use in agricultural production, which also includes
beekeeping and fish, quail, rabbit and worm farming for market.

2. Every agricultural commodity or kind of seafood sold or distributed by any
person to any other person who purchases not for direct consumption but for the
purpose of acquiring raw products for use or consumption in the process of
preparing, finishing, or manufacturing such agricultural or seafood commodity
for the ultimate retail consumer trade, except when such agricultural or seafood
commodity is actually sold or distributed as a marketable or finished product to
the ultimate consumer. &#8220;Agricultural commodity,&#8221; for the purposes of
this subdivision, means horticultural, poultry, and farm products, livestock and
livestock products, and products derived from bees and beekeeping.

3. Livestock and livestock products, poultry and poultry products, and farm and
agricultural products, when produced by the farmer and used or consumed by him
and the members of his family.

4. Machinery, tools, equipment, materials or repair parts therefor or
replacement thereof; fuel or supplies; and fishing boats, marine engines
installed thereon or outboard motors used thereon, and all replacement or repair
parts in connection therewith; provided the same are sold to and purchased by
watermen for use by them in extracting fish, bivalves or crustaceans from waters
for commercial purposes.

5. Machinery or tools or repair parts therefor or replacements thereof, fuel,
power, energy or supplies, and cereal grains and other feed ingredients,
including, but not limited to, drugs, vitamins, minerals, nonprotein nitrogen,
and other supplements or additives, used directly in making feed for sale or
resale. Making of feed shall include the mixing of liquid ingredients.

6. Machinery or tools and repair parts therefor or replacements thereof, fuel,
power, energy or supplies, used directly in the harvesting of forest products
for sale or for use as a component part of a product to be sold. Harvesting of
forest products shall include all operations prior to the transport of the
harvested product used for (i) removing timber or other forest products from the
harvesting site, (ii) complying with environmental protection and safety
requirements applicable to the harvesting of forest products, (iii) obtaining
access to the harvesting site, and (iv) loading cut timber or other forest
products onto highway vehicles for transportation to storage or processing
facilities.

7. Fruits, vegetables, and eggs, as described in &#xA7; 3.2-5305, raised and
sold by an individual at local farmers markets and roadside stands, when such
individual&#8217;s annual income from such sales does not exceed $2,500.

8. The following property used directly in producing agricultural products for
market in an indoor, closed, controlled-environment commercial agricultural
facility:
			a. Internal components or materials, whether or not they are affixed to real
property, required (i) to create, support, and maintain the necessary growing
environment for plants, including towers for growing plants; conveyances for
moving such towers; and insulation, partitions, and cladding; (ii) for lighting
systems; (iii) for heating, cooling, humidification, dehumidification, and air
circulation systems; and (iv) for watering and water treatment systems;
			b. External components, machinery, and equipment required (i) for heating,
cooling, humidification, dehumidification, and air circulation systems; (ii) for
utility upgrades and related distribution infrastructure; and (iii) for
creating, supporting, and maintaining the necessary growing environment for
plants; and
			c. Structural components of (i) insulation, partitions, or cladding used in
indoor vertical farming to create and maintain the necessary growing environment
for plants or (ii) translucent or transparent elements, including windows,
walls, and roofs, that allow sunlight in greenhouses to create and maintain the
necessary growing environment for plants.
			For purposes of this subdivision, &#8220;indoor, closed,
controlled-environment commercial agricultural facility&#8221; includes indoor
vertical farming or a greenhouse, regardless of whether the greenhouse is
affixed to real property and, &#8220;agricultural products&#8221; includes any
horticultural, floricultural, viticulture, or other farm crops. However, the
exemption provided by this subdivision shall not apply to property used in
producing cannabis or any derivative of cannabis.

HISTORY: 1993, c. 310; 1994, cc. 365, 381; 1999, c. 229; 2006, cc. 331, 361;
2011, c. 466; 2013, c. 223; 2018, c. 362; 2023, cc. 516, 517; 2025, c. 142.