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Items that are exempt from sales and use tax when sold to people who have an Agricultural Sales and Use Tax Certificate of Exemption include:
- Any appliance used directly and principally for producing agricultural products (This does not include autos, trucks, household appliances or property that becomes real property, such as barns, sheds and fencing.)
- Grain bins and attachments
- Aircraft designed for crop dusting
- Equipment used for harvesting timber (does not include trailers and trucks for transporting)
- Livestock trailers
- Self-propelled fertilizer or chemical application equipment
- Systems for environment control, feeding, watering and egg conveyance for poultry
- Replacement parts and labor for previously qualifying equipment
- Gas or diesel fuel used for agricultural purposes (does not include pre-mixed gas and oil of one gallon or less)
- Seed, seedlings, plants, fertilizer and pesticides used to produce food or fiber, including tobacco, for human or animal consumption
- Farm containers and plastic or canvas covers used in raising plants, including tobacco, for human or animal consumption
- Feeds and drugs for livestock
- Electricity, gas, propane, coal, wood and fuel oil used in the production of food or fiber for human or animal consumption or in the production of nursery and greenhouse crops
Farmers, nurserymen and timber harvesters who would like to make sales tax-free purchases of qualifying items must present proof of their status as an exempt farmer, nursery operator or timber harvester directly to the seller. One of the following documents must be submitted to a seller for sales tax exemption:
- A copy of the Tennessee Department of Revenue Agricultural Sales and Use Tax Certificate of Exemption
- A copy of the wallet-sized exemption card also provided by the Department of Revenue, or
- A fully-completed Streamlined Sales and Use Tax Certificate of Exemption, which includes the exemption number on the certificate or card issued by the Department
Sellers must keep a copy of one of these documents on file and include the buyer's name, address and description of tax-exempt purchases on each invoice. Farmers, nurserymen, and timber harvesters should retain their original documents in a safe place for future use during the exemption period.
The Department of Revenue mailed Agricultural Sales and Use Tax Certificates of Exemption to those who were determined automatically to qualify for the exemption in December 2011. These certificates are good for the period of January 1, 2012 through December 31, 2015. Older cards are for exemptions prior to January 1, 2012, and they cannot be used for current purchases. Sellers should still keep copies of the older exemption certificates to support any tax-exempt sales made before January 1, 2012.
For those who want to received a certificate, fill out an application and file it with Revenue. Receipt of a certificate serves as the notice of sales tax-exempt status.
Every fourth year, the Department of Revenue reissues agricultural certificates of exemption to all current exemption holders. Renewed certificates are mailed during the latter part of December before the end of the certificate’s expiration date (certificates for the current period expire December 31, 2019). New certificates have an effective date of January 1 of the following year, and they will expire on December 31 four years later.
No action is needed on behalf of current exemption holders, unless you have changed your address, or you no longer meets the requirements for exemption (please see the certificate application for a list of these requirements). If your mailing address has changed, please notify the Department by submitting a request. If you no longer meet the requirements for the agricultural exemption, please notify the Department by calling us at 615-253-0600.
Do you have additional questions? Search Revenue Help for answers. You can also submit a ticket to one of our representatives.