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Q:  Must the seller receive an exemption certificate at the time of each tax-exempt sale?


No.  The exemption applies if a seller receives an “Exemption Certificate for Repair Parts and/or Services for Farm Machinery and Equipment” from the farmer at the time of sale or has a copy of the farmer's current exemption certificate on file.  An exemption certificate issued by the Department to an eligible farmer identifies both the effective date and the expiration date of the certificate, and applies only to purchases made by the farmer during that time period.

Thus, a seller who accepts a current exemption certificate is relieved of the responsibility to collect retail sales or use tax unless the seller solicits the purchaser to participate in unlawfully claiming the exemption or fraudulently fails to collect tax that is due.

More information
Special Notice: Replacements Parts for Farm Machinery and Equipment - Sales and Use Tax Exemption (pdf)
Agriculture guide
Related questions & answers
If a seller receives an exemption certificate for replacement parts for farm machinery and equipment, must the seller verify that the farmer uses the part for farm machinery and equipment?
Does the seller need to keep a copy of the exemption certificate for replacement parts for farm machinery and equipment on file?
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