Form Rv-F1308401 - Application For Registration Agricultural Sales And Use Tax Certificate Of Exemption - 2009 Page 6
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30SALES AND USE TAX APPLICATION TO FARMING, TIMBER HARVESTING, NURSERY OPERATIONS, AND AGRITOURISM
Application for Agricultural Exemptions (cont’d)
Straw purchased from a supplier other than the
agricultural producer does not qualify for exemption
Persons who have obtained authority from the
when presenting the certificate. Straw is not one of
commissioner to make purchases tax exempt as a
the items specified in the statute as tax-exempt even
qualified farmer, timber harvester, or nursery
when purchased by a farmer, timber harvester or
operator shall provide their vendors with a copy of
nursery operator.
the certificate issued by the commissioner or a fully
completed Streamlined Sales Tax Certificate of
When agricultural commodities sold by anyone other
Exemption, which must include the exemption
than the producer to a third party who is purchasing
authorization number included on the certificate
to acquire raw products for use or for sale in the
issued by the commissioner, to evidence qualification
process of preparing, finishing, or manufacturing the
for the exemption.
agricultural commodities for retail sale to the ultimate
consumer, such sales are exempt from the sales or
Persons making purchases exempt from tax under
use tax, including payment of the tax applicable to
this section shall keep records to establish that the
the sale, storage, use, transfer, or any other utilization
property qualifies for the exemption. The purchaser
or handling of the products.
shall be liable for tax, penalty, and interest for
making non-qualifying purchases without payment of
In such instances, the tax will be collected on the sale
tax.
of the agricultural commodities when they are
actually sold as a marketable or finished product to
Exemption
from
Sales
and
Use
Tax
of
the ultimate consumer. The sales or use tax will be
collected only once.
Agricultural Products Grown or Produced
[Tenn.
Code Ann. Section 67-6-301]
For sales or use tax purposes, “agricultural
The gross proceeds derived from sales of livestock,
commodity” means horticultural, poultry, and farm
nursery stock, poultry and other farm or nursery
products, and livestock and livestock products.
products, made in any calendar year directly by a
farmer or nursery operator, are exempt from the sales
Effective July 1, 2007, sales made directly from a
or use tax if 50% or more of the products sold are
farmer or nursery operator to a consumer though an
grown or produced in the calendar year by the farmer
online nonprofit farmers’ market are exempt from
or nursery operator making the sale.
sales or use tax providing that:
If less than 50% of the products being sold in any
+
An amount equal to the consumer’s full purchase
calendar year are grown or produced by the farmer or
price is transmitted by the consumer or the online
nursery operator, then only the gross proceeds of
farmers’ market to the farmer; and
sales of the products actually grown or produced by
The cooperative or other organizing body of the
+
online farmers’ market charges no fee or other
such farmer or nursery operator are exempt from the
charge for facilitating the sales other than “virtual
sales or use tax.
booth” rental fees assessed to participating farmers
to cover actual costs incurred in operating the
Generally, when sales of livestock, nursery stock,
online farmers’ market
.[Tenn. Code Ann. Section 67-
poultry, or other farm or nursery products are made
6-301(a) amended by Public Chapter 507, Acts of 2007]
to consumers, other than as described here, they are
not exempt from the sales or use tax. In other words,
Agritourism
when a farmer sells farm products that the farmer
produced to a person who sells only products grown
Agritourism is a style of activity in which hospitality
by others, such as a grocery store, the resale by the
is offered on farms. This may include the opportunity
grocery store of the farm products is subject to the
to assist with farming tasks during the visit.
sales or use tax.
Participants can pick fruits and vegetables, visit
mazes cut in crop fields or “Halloween” mazes
When livestock and livestock products, poultry and
(including
Halloween-oriented
activities
and
poultry products, or farm, nursery, and agricultural
characters in costume), ride horses, taste honey, learn
products are produced by a farmer or nursery
about crops, participate in hay rides (which may
operator and used by the nursery operator or
include
picnics,
campfires
or
bonfires,
and
members of the nursery operator’s family, the sales
entertainment such as music and dancing), shop in
or use tax law states specifically that Tennessee use
gift shops and farm stands for local and regional
tax does not apply.
produce or hand-crafted gifts, purchase food and
beverages, purchase photographs, and much more.
5
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form Rv-f1308401 - Application For Registration Agricultural Sales And Use Tax Certificate Of Exemption
Financial
Form S-103 - Application For Wisconsin Sales And Use Tax Certificate Of Exempt Status (ces)
Financial
Form S-103 - Application For Wisconsin Sales And Use Tax Certificate Of Exempt Status (ces)
Financial
Form St-13a - Sales And Use Tax Certificate Of Exemption (for Use By A Church Conducted Not For Profit)
Financial
Form St-20a - Sales And Use Tax Certificate Of Exemption (for Use By Production Companies, Program Producers, Radio, Television And Cable Tv Companies)
Financial
Related Categories
Parent category: Financial