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By Tom Latek

Kentucky Today

The Kentucky Department of Revenue 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 state law provisions regarding agriculture sales and use tax exemptions have not changed, the new tax ID number requirement will ensure only those who have pre-qualified with the Department of Revenue are able to claim these exemptions.

Under legislation passed and signed into law in 2020, 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 the applicable tax exemptions.

“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,” said Revenue Commissioner Thomas B. Miller. “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.”

Miller added, “An upcoming release of a new searchable database will also make this process transparent and convenient for both the sellers and the buyers.”

Applicants must verify their engagement in the type of farming eligible for sales and use tax exemptions included in state law. They 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 Application for the Agriculture Exemption Number, Form 51A800, is 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.

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 the email address listed above.