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