Farming and Ranching: Production Exemption

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.

Businesses That Qualify

Farms and ranches that qualify for the production exemption on sales tax

Purchases That Qualify

Purchases that qualify for the production exemption on sales tax

Taxable Items

Even with a production exemption, there are taxable items

Motor Vehicles

Some motor vehicles qualify for the production exemption

Change Use of an Item

What you should do if you change the use of an exempt item

Buyer’s Responsibility

Buyer’s responsibility to keep records, pay use tax

Exemption Certificates

Exemption certificates for the production exemption

Sales by Farmers and Ranchers

Sales by farmers and ranchers or vendors selling to them

Laws and Rules

Laws and rules for the production exemption