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Alcoholic beverages tax: farming

New York State agriculture is an integral part of our state’s craft beverage industry. Alcoholic beverages tax is not imposed on agricultural products used in the production of alcoholic beverages. This section contains information on a variety of other tax exemptions, and tax credits, available for those involved in this aspect of alcoholic beverage production. 

Farming includes the growing and harvesting of crops used in producing alcoholic beverages for sale, such as grapes, apples, hops, and grains. Some farmers sell their products to alcoholic beverage producers, while others use their crops to produce their own alcoholic beverages for sale. In both circumstances, a variety of sales tax exemptions exist. For more information, see Tax Bulletin Exemptions for Farmers and Commercial Horse Boarding Operators (TB-ST-244).