Do you operate a farm or ranch that produces farm and ranch goods you’ll sell? Or are you a custom farmer or rancher that performs qualifying activities for a farmer or rancher? If so, you might qualify for the production exemption.
If you qualify for the production exemption, you can buy some equipment and supplies without paying sales or use tax. The production exemption includes special rules for farmers and ranchers.
Sales by Farmers and Ranchers
Or vendors selling to them
Businesses That Qualify
For the production exemption
Purchases That Qualify
For the production exemption
Motor Vehicles
That might qualify for the production exemption
Change Use
Of an exempt item
Taxable Items
Even with a production exemption
Buyer’s Responsibility
To keep records, pay use tax