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 are an “eligible farmer”, you can purchase replacement parts for farm machinery and equipment, and certain related services, exempt from sales tax. You must provide the seller with a completed Farmer’s Certificate for Wholesale Purchases and Sales Tax Exemptions.
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.
For more information please see our Special Notice titled Repair Parts and/or Services for Farm Machinery and Equipment – Sales and Use Tax Exemptions Update
Livestock Nutrient Management Equipment Sales Tax Exemption
Effective June 12, 2014, businesses that qualify for the sales and use tax exemption on equipment and facilities used in livestock nutrient management no longer need to apply for an exemption certificate from the Department. These businesses must instead provide their vendor with a Farmers’ Certificate for Wholesale Purchases and Sales Tax Exemptions to receive the exemption on qualifying purchases. See our special notice Change to the Sales Tax Exemption for Livestock Nutrient Management for more information.