Section 130.2100  Sellers of Feed and Breeding Livestock

a)         Sellers of Feed – When Liable for Tax

The sale of feed to purchasers for feeding livestock or poultry that will be used or consumed by the purchaser or where the products of such livestock or poultry are to be used or consumed for purposes other than for resale or sale at retail, constitutes a "sale at retail" within the meaning of the Retailers' Occupation Tax Act [35 ILCS 120].  See also 86 Ill. Adm. Code 130.210.  In such case, gross receipts of the seller from this source must be included in computing retailers' occupation tax liability.  For purposes of this Section, "feed" means and includes salt, grains, tankage, oyster shells, mineral supplements, vitamins, limestone, and other generally recognized animal feeds.  The sale of straw or other materials used for bedding or other non-feed purposes, is subject to tax as a consumable supply. 

b)         Sellers of Feed – When Not Liable for Tax

The sale of feed to purchasers for feeding livestock or poultry that will be sold for resale or at retail or the products of such livestock or poultry will be sold for resale or at retail, is not a sale for use or consumption.  Such sales of feed are deemed to be sales for purposes of resale, "as an ingredient or constituent, goes into and forms a part of tangible personal property subsequently the subject of a 'sale at retail'".  86 Ill. Adm. Code 130.210(b).

c)         Sellers of Breeding Livestock – When Not Liable for Tax

Farmers or producers of breeding livestock are not liable for retailers' occupation tax with respect to gross receipts realized from the sale of bulls, stallions, or other animals for breeding purposes.  In addition, sellers of semen used for artificial insemination of livestock for direct agricultural production are not liable for retailers' occupation tax with respect to gross receipts realized from such sales.

(Source:  Amended at 49 Ill. Reg. 2107, effective February 5, 2025)