N.Y. Comp. Codes R. & Regs. tit. 20 § 471.5

Current through Register Vol. 46, No. 25, June 18, 2024

Section 471.5 - Farm motor vehicles

Tax Law, § 504, subd. 3

(a) A motor vehicle which is both owned and operated by a farmer is exempt, provided it is used exclusively by him for any or all of the following purposes:

(1) to transport his own agricultural commodities, products, pulpwood or livestock;

(2) to transport the packed, processed or manufactured products which were grown or raised on his farm, lands or orchards;

(3) to transport supplies to his own farm or orchard for consumption and use thereon;

(4) to transport farm products from a farm contiguous to his own.

(b) Any use of a motor vehicle, owned and operated by a farmer, for any other purpose than those set forth above destroys its exemption completely with the result that a permit and plate must be obtained for such vehicle and its entire mileage for the calendar month including mileage both for exempt and nonexempt purposes is taxable.

Example 1:

A farmer owns and operates a motor vehicle in which he hauls his own farm produce. In addition thereto he also carries milk to a dairy from farms not contiguous to his own. These two types of operations are performed during the entire year. The motor vehicle is not exempt. A permit and plate must be obtained for it and its entire mileage is taxable.

Example 2:

A farmer leases from another a motor vehicle for use in hauling his farm produce to a canning factory. The motor vehicle is not exempt.

Example 3:

A farmer owns and operates a truck which he uses exclusively to haul his own farm produce. The truck is exempt from the statute. On August 15 he enters into a contract with a canning factory to transport products to it from farms not contiguous to his own during the period from August 15 to September 15. The use of the truck for this purpose destroys its exemption. A permit and plate must be obtained for it. Its entire mileage for the months of August and September is subject to tax. After the termination of the contract if the truck is again used exclusively to transport the farmer's own produce it is again exempt.

(c) The exemption is limited by the statute to motor vehicles which are owned and operated by a farmer. It does not extend to motor vehicles owned or operated by co-operative associations or by persons engaged in the business of transporting farm products for others, even though the motor vehicles are carrying farm products.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 471.5