How to Apply for a Farming Sales Tax Exemption

If you are in the farming/agricultural business, there are tax exemptions available to you. These exemptions provide tax breaks for personal property, equipment used in farming, the upkeep of your land and other items. Here are the steps for claiming the exemptions.

Instructions

1. Call your State's Tax and Finance Department or visit the department's website. Request or download the farming sales tax exemption form. The forms are usually available for download on the state website. You can also ask the department to mail the form.

2. Complete the form. The forms come with instructions telling you how to complete it. However, if you have additional questions, contact your state's Department of Finance and Taxation.

3. Present the completed certificate to the retailer when purchasing a tax-exempt item.

Tips & Warnings

• Many states refer to the Farmers Tax Exemption form as a "certificate."

• Some states have specific forms for farmers while other states have generic state tax exemption forms for which you check the box for "farmers."

• If you are exempt from paying sales taxes on purchases, you still must collect sales taxes on items you sell to non-exempt individuals or organizations.

Resources

• Sample sales tax exemption form for Wisconsin