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Ohio Administrative Code (Last Updated: January 12, 2021) |
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5703 Department of Taxation |
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Chapter5703-3. Property Tax |
5703-3-30. Personal property in inventory of a merchant manufactured for agricultural use not subject to personal property tax
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Pursuant to division (A) of section 5701.08 of the Revised Code as amended by Am. Sub. H.B. 291 of the 115th General Assembly, effective July 1, 1983, new or used machinery and equipment and accessories therefor which are designed and built for agricultural use and owned by a merchant, as defined in section 5711.15 of the Revised Code, are not considered "used in business" and, therefore, not subject to personal property tax under the provisions of division (B)(1) of section 5709.01 of the Revised Code.
To qualify for this exception such property must meet all of the following conditions:
(A) It must be owned by a merchant. Property consigned to a merchant does not qualify. Also, a manufacturer is not a merchant with regard to property he manufactures.
(B) It must be machinery and equipment, or accessories therefor. Tools and implements do not qualify. Qualifying accessories are those that are usable only when attached to or coupled with qualifying machinery and equipment.
(C) It must be designed and built for agricultural use. Typical qualifying items include balers, combines, cultivators, driers, feed grinders, harrows, rotary hoes, mills, pickers, planters, plows, shellers, and silo fillers. Also qualifying are farm-type loaders, spreaders, tillers, tractors, and wagons. However, neither home lawn and garden-type items, nor general-use items such as bulldozers, graders, trenchers, and trucks, shall be considered as designed and built for agricultural use.
A merchant shall be required to disclose in his personal property tax return all property held for sale, segregating property qualifying for this exception from non-qualifying property, and list the monthly-ending values of all non-qualifying property in "Schedule 3A."