In extension, We now have acquired Tons questions Regarding the agriculture gross sales tax exemption regulation Because it was handed by the 2020 Kentucky legislature.
Legislators handed this regulation To assist guarantee solely these actively farming acquire the 6Percent gross sales tax exemption on qualifying buys. It additionally creates An internet-based mostly database That currents companies a one-cease-store to confirm that a farmer is gross sales tax exempt.
Exempt gadgets Aren’t altering from previous years, however What’s altering is That you merely’re going to Want to use for a gross sales tax exemption quantity from the Kentucky Division of Income earlier than Jan. 1. You will get this software, Type 51A800, on-line at https://revenue.ky.gov/Types/51A800Percent20(4-21)_fill-in.pdf. The equipment Is short-term. You will need your driver’s license quantity and proof that you farm using Definitely one of many following paperwork:
• IRS Schedule F, Revenue or Loss from Farming
• IRS Type 4835, Farm Rental Income and Funds
• Farm Service Agency quantity
• Completely different documentation that establishes your agricultural exercise
It is rather important notice that the Division of Income prefers you submit the IRS Schedule F, if potential. If accredited, you will acquire a letter from the Division of Income containing your agriculture exemption quantity.
Sales tax exempt gadgets embrace many supplies used To current crops and livestock for human consumption. It is rather important notice the phrases “human consumption.” That is the rationale why horses and horse-associated gadgets and regulationn care devices like zero-flip mowers Aren’t tax exempt.
You will Have to have the agricultural gross sales tax exemption quantity and the Farm Exemption Certificates, Type 51A158, for farm and equipment buys. For The enchancment of farm amenities, use your tax exemption quantity Collectively with the Certificates of Exemption for Materials, Machinery and Gear, Type 51A159.
Starting Jan. 1, You should current a accomplished exemption certificate containing your agriculture exemption quantity To every of your agricultural suppliers.
After that, You ought to use the agriculture exemption quantity as proof of an exempt buy For As prolonged As a Outcome of the quantity is legitimate. The agricultural gross sales tax exemption is legitimate For 3 years after the day it was issued. After that date, You will have to reapply for the exemption.
For extra Particulars about agricultural gross sales tax exemptions, contact the Laurel County office of the College of Kentucky Cooperative Extension Service.
Supply: Jerry Pierce, coordinator for the Kentucky Farm Enterprise Administration program