Farmers should make use of the NYS Farmers Sales Tax Exemption!
While I’m no sales tax expert, I was involved in crafting the revision to the NYS Sales Tax law relative to the expansion of the Farmers Exemption in 1998. Since I helped craft this law I really like for farmers to make good use of it!
Contrary to popular misconceptions, the NYS farmers exemption requires no registration or “number” from NYS. The farmer fills out the ST-125 Farmers Exempt Certificate certifying that they are using the goods primarily for the farm and we don’t have to charge sales tax! It is one of the few things NY does simply.
There really is no number for the farmer’s sale tax exemption. There is no place to insert a “number” on the ST-125
We keep the completed ST-125 on file with the “blanket” box is checked so the form only needs to be completed once. A farmer has to be selling an end product such as eggs, meat, livestock to qualify for the farmer’s exemption. The form does require the person submitting the form (the farmer) to certify that the products being purchased are for predominantly (51% or greater) farm use. As an example: if you buy a can of paint to paint the barn, as long as at least 51% is used on the barn the rest can be used on the farm house as well.
We have been audited for sales tax compliance many times by NYS Department of Tax and Finance and have had no issues with the use of the farmers sales tax exemption.
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Jay Ward with a copy of NYS legislation passed in 1998 to modify the sales tax law to expand and simplify the farmers sales exemption. The legislation lists Jay as part of a team of lumber dealers who, along with NY Farm Bureau, advocated for the change and worked with NYS Dept of Tax and Finance to pass the bill. The copy of the legislation hangs in Jay’s office.
To learn about Jay Ward’s efforts to remove sales tax for New York farmers.Click Here
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