SUT-166 - Grain Bins and Silos

Grain bins qualify as exempt agricultural equipment when purchased by qualified farmers. Grain bins are structures with augers, fans, and related equipment designed to dry grain to a desired state for market.

Conversely, silos and materials used to build silos are subject to sales tax. Silos are structures designed to contain silage and cause a heated fermentation process to convert the harvested silage to a desired state to feed cattle, usually during the winter. Silos are structures that become realty upon installation. Silos are not listed as exempt under the farming exemption.

Reference: Tenn. Code Ann. § 67-6-207.

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