FRANKFORT, Ky. (August 24, 2021) — The Kentucky Department of Revenue (DOR) is now accepting applications from eligible farmers for new agriculture exemption numbers designed to protect the sales and use tax exclusions available to the agricultural community.
While the statutory provisions for agriculture sales and use tax exemptions have not changed, the new tax ID number requirement will ensure only those who have pre-qualified with DOR are able to claim these exemptions.
Under the provisions of SB 148, enacted by the 2020 General Assembly and signed into law by Gov. Andy Beshear on March 27, 2020, all eligible farmers exempt from sales and use tax for the purchase of certain items must apply for and use their new agriculture exemption number when claiming applicable tax exemptions under KRS 139.481.
"Our Department of Revenue staff have worked closely with both the farming and retail communities in the development of a simple process to qualify for the exemption number," DOR Commissioner Thomas B. Miller said. "This application process and issuance of an agriculture exemption number will improve overall compliance with state tax codes while minimizing claims by parties ineligible for the exemptions. An upcoming release of a new searchable database will also make this process transparent and convenient for both the sellers and the buyers."
The Application for the Agriculture Exemption Number, Form 51A800, is available at www.revenue.ky.gov under Sales Tax forms. Completed applications should be submitted by email to DOR.Webresponsesalestax@ky.gov or mailed to DOR's Division of Sales and Use Tax, Station 66, P.O. Box 181, Frankfort, KY 40602-0181.
Applicants must verify their engagement in the type of farming eligible for sales and use tax exemptions included in KRS Chapter 139. These exclusions include certain items purchased for the purpose of raising livestock as food for human consumption or producing crops. To expedite the application process, DOR advises applicants to supply the IRS Schedule F, Profit or Loss from Farming form, if possible.
The deadline to apply for the new agriculture exemption number for current farmers is January 1, 2022. The agriculture exemption number is valid for three years from the date issued by DOR.
Contact the Division of Sales and Use Tax with questions at (502) 564-5170 or DOR.Webresponsesalestax@ky.gov.