Are you using the correct exemption certificate?
If you use the wrong exemption certificate, your purchase may not be exempt from retail sales tax.
The Department has recently updated the Farmer’s Tax Exemption Matrix. This document explains which exemption certificate to use for each type of purchase. Please review it before making any purchases.
Farmers using the wrong exemption certificates may be liable for the unpaid sales tax.
Purchasing replacement parts exempt from sales tax
If you have a Farm Replacement Parts Certificate issued by the Department of Revenue, you can purchase replacement parts for farm machinery and equipment, and certain related services, exempt from sales tax. You must provide the seller a copy of your Farm Replacement Parts Certificate.
This exemption is limited to charges for:
- Parts that replace an existing part, or are essential to maintain the working condition, of a piece of qualifying farm machinery and equipment.
- Installing replacement parts for qualifying farm machinery and equipment.
- Repairing qualifying farm machinery and equipment.
To apply for an exemption certificate, submit an Application for Exemption Certificate for Replacement Parts and/or Services for Farm Machinery and Equipment. It may take up to 60 calendar days to process your application.
For more information about the replacement parts exemption, please refer to our special notice Repair Parts and/or Services for Farm Machinery and Equipment – Sales and Use Tax Exemptions.
Livestock Nutrient Management Equipment Sales Tax Exemption Reinstated
Effective July 1, 2013, the Livestock Nutrient Management Equipment Sales Tax Exemption is reinstated. See our special notice Livestock Nutrient Management Equipment Sales Tax Exemption Reinstated for more information.
Field burning exemption expired December 31, 2010
The sales and use tax exemptions for purchases of specific equipment to reduce field burning expired December 31, 2010. Sellers must collect and remit sales tax on these sales. See our special notice Sales Tax Exemption to Reduce Agricultural Burning Expires.