Are farmers exempt from sales or use tax on vehicles that are licensed to operate on the highways?
Generally, no. Farmers are only exempt on equipment that is primarily used in farming, such as tractors, planters or combines that plow the fields, plant the crops or harvest the crops. Motor vehicles (automobiles, trucks, etc.) registered for use on the highways and used to transport seed, fertilizers, chemicals or finished products are taxable. APV’s qualify for exemption only if used primarily (more than 50 percent of the time) in farming (similar to the way a tractor is used).
An exception is the purchase of a specially designed vehicle with a tank operated with a power take-off unit (PTO) and used primarily to spray liquid fertilizers, pesticides, herbicides, etc., on farm lands and crops. This vehicle is owned by a company hired by a farmer to provide a farming service and must operate on the highways since it travels from farm to farm. If the tank/sprayer is not operated by a power take-off unit, the vehicle is subject to the tax but the tank/sprayer unit is not. In this case, the dealer must separate the charges for the vehicle and the tank/sprayer unit.
Another exception is vehicles and trailers that are primarily used to prevent illness to farm livestock for sale, or to prevent contamination of livestock products for sale. For example, a trailer primarily used to inoculate swine and cattle for sale, or transport sick animals to and from quarantine areas are not subject to the tax. Also, a trailer owned by the farmer to primarily transport feed to the farm that would otherwise be contaminated if shipped commercially may be exempt. Vehicles owned and used by egg producers to ship eggs from the farm to market under refrigerated conditions are also not subject to tax.
Are farmers exempt from sales or use tax on vehicles that are licensed to operate on the highways?
Generally, no. Farmers are only exempt on equipment that is primarily used in farming, such as tractors, planters or combines that plow the fields, plant the crops or harvest the crops. Motor vehicles (automobiles, trucks, etc.) registered for use on the highways and used to transport seed, fertilizers, chemicals or finished products are taxable. APV’s qualify for exemption only if used primarily (more than 50 percent of the time) in farming (similar to the way a tractor is used).
An exception is the purchase of a specially designed vehicle with a tank operated with a power take-off unit (PTO) and used primarily to spray liquid fertilizers, pesticides, herbicides, etc., on farm lands and crops. This vehicle is owned by a company hired by a farmer to provide a farming service and must operate on the highways since it travels from farm to farm. If the tank/sprayer is not operated by a power take-off unit, the vehicle is subject to the tax but the tank/sprayer unit is not. In this case, the dealer must separate the charges for the vehicle and the tank/sprayer unit.
Another exception is vehicles and trailers that are primarily used to prevent illness to farm livestock for sale, or to prevent contamination of livestock products for sale. For example, a trailer primarily used to inoculate swine and cattle for sale, or transport sick animals to and from quarantine areas are not subject to the tax. Also, a trailer owned by the farmer to primarily transport feed to the farm that would otherwise be contaminated if shipped commercially may be exempt. Vehicles owned and used by egg producers to ship eggs from the farm to market under refrigerated conditions are also not subject to tax.
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