Farming and Ranching

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

Exemption Certificates

Laws and Rules