Farmers Can Buy More Tax Free in 2023
Under a new state law that took effect on January 1, 2023, qualified farmers and nursery operators may purchase building material, fencing material, warranties, and most other items of tangible personal property used primarily in agricultural operations exempt from sales and use tax.
Click here to read more new laws in 2023.
“Farming is an important industry in our state, and we were pleased to work with the Tennessee Department of Agriculture, members of the Tennessee General Assembly, and other stakeholders to expand the agricultural sales tax exemption,” said Revenue Commissioner David Gerregano.
“The new tax exemptions will greatly benefit Tennessee’s farmers and foresters when purchasing what they need for their operations to thrive,” said Agriculture Commissioner Charlie Hatcher, D.V.M. “As Tennessee’s number one industry, when agriculture is strong, everyone benefits. We appreciate our policymakers for recognizing the importance and impact of ag.”
To purchase farm equipment and machinery tax-free, farmers must show their Tennessee sales tax exemption card. To obtain a card, famers should complete the Agricultural Sales and Use Tax Exemption application.
Automobiles, trucks, household appliances, and gasoline or diesel fuel used in vehicles operated upon public highways remain subject to sales tax. Additionally, contractors and subcontractors who use property in the performance of a contract with a qualified farmer or nursery operator are subject to sales and use tax on that property.
Click here to read more new laws in 2023.
For more information about the agricultural sales tax exemption, read this important notice and this tax manual on the Tennessee Department of Revenue’s website. For questions, please call (615) 253-0600 or e-mail revenue.support@tn.gov.
The Tennessee Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws and the collection of taxes and fees associated with those laws. The department collects around 87 percent of total state revenue. During the 2022 fiscal year, it collected nearly $20.9 billion in state taxes and fees and more than $4.3 billion in taxes and fees for local governments. To learn more about the department, visit www.tn.gov/revenue.
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