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.