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Farmers should apply for new agricultural exemption number

Deadline for current farmers is January 1, 2022

By Sean Southard

Frankfort, KY - Kentucky Commissioner of Agriculture Dr. Ryan Quarles is reminding agricultural producers about the upcoming deadline to apply for Kentucky's new agriculture exemption number. The deadline to apply for current farmers is Jan. 1, 2022.

Under the provisions of SB 148, enacted by the 2020 General Assembly and signed into law by Gov. Andy Beshear on March 27, 2020, all 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 applicable tax exemptions under KRS 139.481.

The Application for the Agriculture Exemption Number, Form 51A800, is available 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.


Applicants must verify their engagement in the type of farming eligible for sales and use tax exemptions included in KRS Chapter 139. These exclusions 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 agriculture exemption number is valid for three years from the date issued by DOR.

"As the new rules take effect next year, we don't want our Kentucky agriculture producers to be caught off guard," Commissioner Quarles said. "With inflation and supply chain issues affecting farm input costs, now is the time for farmers to get their new exemption number so they can protect the sales and use tax exclusions available to them."

While the statutory provisions for agriculture sales and use tax exemptions have not changed, the Kentucky Department of Revenue (DOR) now requires agricultural producers to pre-qualify for a new tax identification number to claim exemption from taxes. The DOR is now accepting applications from eligible farmers for new agriculture exemption numbers.

Contact the Division of Sales and Use Tax with questions at (502) 564-5170 or DOR.Webresponsesalestax@ky.gov.


This story was posted on 2021-12-08 08:58:36
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