True or False: Livestock and poultry sold for food or as breeding stock for food purposes are tax exempt.

The statement that livestock and poultry sold for food or as breeding stock for food purposes are tax exempt is true. In Indiana, the state recognizes livestock and poultry as essential agricultural products, leading to their exemption from sales tax when sold for food production. This tax exemption applies generally, as long as the animals are intended for food consumption, which bolsters the agricultural community and food supply.

The reasoning behind this tax exemption aligns with agricultural policy, where the government aims to support farmers and the livestock industry by minimizing the financial burden associated with selling these essential goods for food production. This exemption helps to maintain the affordability of food across the state and encourages the growth of the agricultural sector by making it more economically viable for farmers to raise and sell livestock and poultry.

To summarize, the primary purpose of the tax exemption on livestock and poultry for food purposes is to facilitate food supply and support the agricultural economy, making the assertion in the question accurate.