3.308 Exemption for Materials, Tools, Fuels, and Machinery Used in Agricultural Production

Origin: Materials, tools, fuels, and machinery, including spare parts, are exempt from sales and use tax if they are consumed or used directly and exclusively in agricultural production. Also exempt under this expenditure are sales of livestock and poultry used for food for human consumption, and sales of feed, and the bags in which the feed is contained, used for animals that either (i) ordinarily constitute food for human consumption, (ii) are used for research or testing for health and safety purposes, or (iii) are fur-bearing animals whose pelts are sold in the regular course of business. In addition, seeds and plants are exempt if used to grow food for human consumption. Comment: This estimate includes sales/use tax exemption of $11.7 million for FY26 for materials, tools, fuel, machinery and replacement parts, used directly and exclusively in production and manufacturing of marijuana.

Origin: M.G.L. c. 64H, § 6(p), (r) and (s)