Georgia sales tax exemption for agricultural irrigation — separate from manufacturing

Auditing a large pecan orchard in Augusta served by Georgia Power. They use significant electricity for irrigation pumps and cold storage. Georgia has a manufacturing exemption but pecans aren't manufactured — they're grown. Is there a separate agricultural exemption in Georgia for electricity used in farming operations?

Georgia exempts electricity used directly in agricultural production under OCGA 48-8-3.3. This covers irrigation, cold storage for harvested crops, drying, sorting, and packing — essentially everything from field to warehouse. It's separate from the manufacturing exemption and has its own qualification criteria. File Form ST-5A (Agricultural Exemption Certificate) with Georgia Power. I found this for a poultry farm near Atlanta and the savings were substantial — the exemption applied to about 85% of their electricity usage.

Derek H. provides the right guidance. Agricultural exemptions exist in most states with sales tax on utilities but they're often in a separate section of the tax code from manufacturing exemptions. For any client engaged in farming, ranching, dairy, poultry, aquaculture, or crop production, check for agricultural-specific exemptions in addition to any general commercial exemptions. The qualifying activities are broader than most people assume — post-harvest processing, cold storage, irrigation, and even greenhouse heating typically qualify.

Filed ST-5A with Georgia Power. Agricultural exemption approved covering irrigation pumps, cold storage, and the sorting facility. 82% of total electricity qualified. Refund for 3 years was $37,000 and go-forward savings about $1,050/month. The orchard owner had assumed only 'real farmers' growing row crops qualified — he didn't know tree crops counted too.