Feed Mill Not Engaged in Agricultural Production
In Sietsema Farms Feeds, L.L.C. v. Department of Treasury, Michigan Court of Appeals, No. 302033, February 28, 2012, a feed mill was not entitled to an agricultural production exemption from Michigan use tax on certain equipment used in its feed operations because the taxpayer did not use the property in the "breeding, raising, or caring for livestock, poultry, or horticultural products" as required by statute. The taxpayer utilized the equipment to produce animal feed which was then sold to hog and turkey farms. In order to qualify for the exemption, the taxpayer must actually use the property to feed livestock and poultry. The court also affirmed the Tax Tribunal's denial of the industrial processing exemption, as the taxpayer failed to present a persuasive argument that the tribunal's decision was an error of law or was otherwise unsupported by the evidence.