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Items that are exempt from sales and use tax when sold to people who have an Agricultural Sales and Use Tax Certificate of Exemption - "for use after January 1, 2023" include:
- Tangible personal property used primarily (more than 50%) by a qualified farmer or nursery operator in agriculture operations
- Equipment used primarily for harvesting timber
- Gasoline or diesel used in agricultural operations
- Seeds, seedlings, and plants grown from seed
- Livestock and poultry feeds
- Drugs used for livestock
For more information on what agricultural items qualify for exemption, please see the Department's Tax Manual for Farmers, Nursery Operators, and Timber Harvesters.
Farmers, nursery operators, and timber harvesters must present proof of their status as an exempt farmer, nursery operator or timber harvester directly to the seller when purchasing qualifying items sales tax exempt. One of the following documents must be submitted to the seller at the time of purchase:
- A copy of the Tennessee Department of Revenue Agricultural Sales and Use Tax Certificate of Exemption - "for use after January 1, 2023"
- A copy of the wallet-sized exemption card provided by the Department of Revenue, or
- A fully-completed Streamlined Sales and Use Tax Certificate of Exemption, which includes the exemption number on the certificate or card issued by the Department of Revenue
Sellers must keep a copy of one of these documents on file and include the buyer's name, address, and description of tax-exempt purchases for each invoice. Farmers, nursery operators, and timber harvesters should keep their original documents in a safe place for future use during the exemption period.
If you have questions about or have lost your agricultural exemption card, please contact Taxpayer Services at (615) 253-0600, option eight.
Agricultural Sales and Use Tax Certificates of Exemption are valid for a four-year period. The Department of Revenue reissues certificates every fourth year to current exemption holders. Once the Department reissues the agricultural exemption certificates, older exemption certificates or cards cannot be used for current purchases. Sellers should still keep copies of the older exemption certificates to support any tax-exempt sales that were made using the now expired exemption certificate or card.
Those who want to receive a certificate should fill out an application "for use after January 1, 2023" and submit it to the Department of Revenue as instructed on the application. Receipt of a certificate serves as the notice of sales tax-exempt status.
The Department of Revenue will mail the renewed certificate only after the taxpayer verifies that it continues to qualify for the exemption. New certificates have an effective date of January 1 of the following year, and they will expire on December 31 four years later.
- Important Notice: Farm Equipment and Machinery (November 2022)
- Notice to Farmers, Timber Harvesters & Nursery Operators
- Notice to Retailers
- Notice to County Clerks
- Tax Manual for Farmers, Nursery Operators, and Timber Harvesters
- Tax Guidance Articles for Farmers, Nursery Operators, and Timber Harvesters
Agricultural certificates of exemption expire every fourth year. Certificates for the current period expire December 31, 2023. Taxpayers need to verify they still qualify for the exemption for the Department to reissue a certificate. Detailed instructions on how to verify continued qualification may be found at the following link: Agricultural Exemption Renewal.