Bulletin no

BULLETIN NO. 022
Issued May 2000
Revised June 2009

THE RETAIL SALES TAX ACT

SALES TO BEEKEEPERS

This bulletin outlines the Retail Sales Tax (RST) exemptions on farm implements, machinery and
other items used “principally for farming” that are purchased by persons engaged in beekeeping.
General
• The Retail Sales Tax Act provides an exemption for farm implements, information
farm machinery, and repair parts therefor that are used “principally for farming”. Farming means the growing of field crops, primary production of food and raising of livestock on farm land for commercial sale. This includes beekeeping. • Exempt items purchased by beekeepers fall into the following categories: - Those that may be taxable when used in operations other than farming, but qualify for the farm exemption when used principally for farming (beekeeping). A “Farm-Use Certificate” as described below must be obtained by the vendor when selling these items exempt from RST. (see List "A”). - Those that are readily identifiable as farm-use equipment and generally have no other useful application. Vendors are not required to obtain a “Farm-Use Certificate” on sales of those items (see List “B”). • See List “C” for items used by beekeepers that are always taxable. • See List “D” for items that are commonly used for non-farming purposes but may in some cases be used principally for farming. In this case the farmer must pay the tax to the vendor at the time of purchase, but may be eligible for a tax refund upon review by the Taxation Division. • This bulletin has been customized for beekeepers. For other information related to farmers, see Bulletin No. 018 – Farm-Use Equipment and Other Items – including information on farm fencing, general purpose building materials, hardware, shop equipment and hand tools. Definitions
• Farm equipment is considered to be purchased “principally for
farming” if it is used at least 80 per cent for farming purposes during the
24 month period after it is purchased. Equipment used more than 20 per
cent for non-farming purposes during the first 24 months after purchase
does not qualify for this exemption and is subject to tax on the full
purchase price.
Note: Revisions to contents of previous Bulletin (May 2000) have been identified by shading ( ). Bulletin No. 022
Sales to Beekeepers
Page 2 of 5
• Where equipment used principally for farming in the 24-month period immediately following acquisition is subsequently switched to non-farm use, no tax applies on the change in use. However, repairs and maintenance to equipment no longer used principally for farming are taxable. Farm-use
• Where a vendor is required to obtain a Farm-Use Certificate at the time of certificate
selling equipment and other items purchased principally for beekeeping (see list “A”), the certificate must be in the following form : “I hereby certify that the goods shown on this invoice will be used principally for farming. .…………. .……." Date Purchaser's signature and land description. Please note: This must be printed, typed, written or applied by rubber
stamp on the copy of the invoice or other document supporting the sale.
List “A”
THE SELLER IS REQUIRED TO OBTAIN A FARM-USE CERTIFICATE TO Conditionally
SUPPORT THE EXEMPT SALE OF THE FOLLOWING ITEMS: • Antibiotics and other medications to prevent or mitigate disease in bees (e.g. Fumidil, Oxysol, Oxytet, Terramycin) • Electric motors used on exempt beekeeping equipment • Extractor heat tape and other types of wrap-around barrel heaters used to • Heating, cooling and ventilation systems, walk-in incubators, as well as related components (including heat exchangers, boilers, ducting, piping,
valves, etc. and installation or repair labour) used specifically for the caring
of bees or for extracting and wintering rooms and barns; but systems or
components (including materials and installation labour) for general-use,
e.g. to a farm residence, office, equipment shed are taxable.
• Honey containers that are not specially labeled for that purpose, including: Other containers (e.g. straws for liquid honey sticks) • Insecticides, fumigants and other products that control pests and parasites Bulletin No. 022
Sales to Beekeepers
Page 3 of 5
in hives such as mites, moths and beetles (e.g. Apistan, beetle traps, formic acid gel, menthol, methyl bromide) and applicators • Paraffin wax used to preserve and protect hives • Rodenticides (e.g. mouse seed, rat poison) • Scales for weighing honey • Specialized materials used for the manufacture or repair of exempt items (e.g. small gauge nails designed to prevent splitting frames), but not general purpose materials (see Bulletin No. 018 – Farm-Use Equipment and Other Items). • Winter packing paper, plastic, insulation and other materials used to List “B”
THE SELLER IS NOT REQUIRED TO OBTAIN A FARM-USE CERTIFICATE Unconditionally TO SUPPORT THE SALE OF ANY OF THE FOLLOWING EXEMPT ITEMS:
exempt items
• Bee hives or supers, including bee escapes, escape boards, hive entrance guards, hive bottom boards, frames, inner covers, outer covers, lids, division boards, lifters, quilts, stands and classifiers • Bee feed (e.g. sugar syrup), pollen supplements, feeders, feeder pails, and • Beekeeper books that contain no advertising • Comb foundation wax (except coloured foundation wax in flat sheets) • Forklifts designed specifically for beekeeping (e.g. “Hummerbee” forklift) and attachments. Other forklifts are taxable (except as noted in List D). • Foundation wax frame tools, including grips, nailers, rests, section folders • Foundation wax inserters and tube fasteners • Foundation wax frames • Frame separators, deboxers and section holders • Honey hydrometers and refractometers • Honey containers that are specially labeled for that purpose • Honey container labels (e.g. brand name, nutrition information) • Honey and extracting equipment, e.g. - Cappings and beeswax equipment (dryers, melters, processors and Honey liquefiers designed to be inserted into barrels and drums (e.g. Bulletin No. 022
Sales to Beekeepers
Page 4 of 5
Api Therma Electric Honey Liquefier). Wrap-around barrel heaters are exempt with a farm-use certificate. • Queen bee excluders and excluder corners • Super clearers, including fume boards and bee repellants (e.g. ”Bee-Go”, List “C”
THE FOLLOWING ITEMS ARE ALWAYS TAXABLE AT THE TIME OF SALE: Taxable items
• Candle and soap making equipment (e.g. double boilers, thermometers) • Candle and soap making supplies (lye, glycerin, oils, wicks, colored beeswax sheets, moulds, liquid soap bottles)
Note: Beekeepers who sell candles or soap on a commercial basis to the
end user are required to be registered as a vendor to collect RST on these
sales. The supplies listed above may be purchased exempt when they are
used to produce goods for sale – the producer must provide their RST
number to the vendor to obtain the exemption.
• Forklifts (see List “D”) (“Hummerbee” and similar forklifts are exempt, see • Industrial mixers (e.g. mixers used in bakeries) (see List “D”) • Insect • Piping and tubing (see List “D”) • Protective clothing for beekeepers, including gloves, coveralls, hats, Bulletin No. 022
Sales to Beekeepers
Page 5 of 5

List “D”
THE FOLLOWING ITEMS MAY BE ELIGIBLE FOR A TAX REFUND WHERE THE TAXATION DIVISION, UPON INVESTIGATION, IS SATISFIED THAT THE PURCHASER IS USING IT PRINCIPALLY FOR FARMING ACTIVITIES: • Forklifts (“Hummerbee” and similar forklifts are exempt, see list “B”) • Industrial mixers used to process feed for bees • Piping and tubing used for honey and extracting equipment
FURTHER INFORMATION

This bulletin is intended to serve as a guideline and is not all-inclusive. For the specific wording
of the law, please refer to The Retail Sales Tax Act and Regulation. Further information may be
obtained from:
Winnipeg Office
Westman Regional Office

Web Site:
ONLINE SERVICES
Our Web sit provides tax forms and publications about taxes
administered by Taxation Division, and a link to Manitoba’s laws and regulations. Forms and
publications can also be obtained by contacting the Taxation Division.

vides a simple, secure way to apply for, and to
file, pay and view your Taxation Division tax accounts.

Source: http://www.ryanco.ca/Assets/Downloads/TaxDevelopments/2009-06/022.pdf

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