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SEE NEW POST-WAYFAIR GUIDANCE FOR SALES TAX COLLECTION FROM OUT-OF-STATE DEALERS HERE

Agricultural Exemption

Click each sub-heading to read more information.

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, hay and silage wagons, and other trailers used directly in the production of agricultural and nursery products
  • The tax exemption for trailers includes: flat-bed trailers and grain trailers used to transport farm products over the road to market; utility trailers and equipment trailers used to transport machinery over the road between farms or to transport supplies over the road to the farm; and water trailers, fuel trailers and other trailers used for agricultural purposes in the operation and maintenance of a farm or nursery 
  • 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
  • Water used directly in growing and producing food and fiber for human or animal consumption, and nursery or greenhouse crops for sale
  • Agri-sawdust
  • Gas or diesel fuel used for agricultural purposes (does not include pre-mixed gas and oil of one gallon or less)
  • 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:

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 sends reissued Agricultural Sales and Use Tax Certificates of Exemption in December to those who are determined automatically to qualify for the exemption.. The certificates are good for a four year period. Once the Department reissues the agricultural exemption certificates, older exemption certificates or cards,cannot be used for current purchases. Sellers should still keep copies of the older exemption certificates to support any tax-exempt sales made that were covered by the now expired exemption certificate or card.

 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 login to your TNTAP account and change your address.  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.