The Tennessee Farm Bureau Federation enthusiastically applauds the Tennessee General Assembly for unanimously passing the Modernization of Agriculture Sales Tax (SB905 Stevens/HB1405 Halford).
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Going forward, all items used to cultivate, produce, harvest, process, market and transport crops will be exempt from sales tax for qualified farmers with the Tennessee Department of Revenue. Several items farmers believed should be exempt were not covered under the previous law and will now be exempt from sales tax for qualified farmers. To use this exemption, individuals must still apply and receive a qualified farmer exemption card from the Tennessee Department of Revenue. Farmers who currently have an agriculture exemption certificate will not need to reapply. The Department of Revenue reissues agricultural certificates of exemption every four years without action by the farmer.
Automobiles, trucks, household appliances, and gasoline or diesel used in vehicles operated upon the public highways ARE NOT exempt today and the status does not change with this bill.