Farmers must have new forms for resale tax exemption
DOR requires Farmer’s Certificate for Wholesale Purchases and Sales Tax Exemptions
Beginning January 1, 2010, resale certificates will no longer be valid. When purchasing wholesale goods, farmers will need to use either a Department of Revenue-issued reseller permit or a Farmer’s Certificate for Wholesale Purchase and Sales Tax Exemptions.
The DOR will automatically mail a free reseller permit to farmers registered with the agency. Those who don’t automatically receive a permit may complete and submit an application or call 800.647.7706 to get one. Criteria for tax exemption haven’t changed (farmers who produce an agricultural product for sale on land they own or have a present right of possession) – only the document provided to the seller.
Those not required to register with the DOR as resellers may use the new Farmer’s Certificate to make sales tax-free purchases for feed, seed, seedlings, fertilizer, pesticides and spray materials, items for resale, and other qualifying goods.
Regardless of whether a permit or Certificate is used, be sure to keep records of purchase for five years from the date of use for audit purposes and DOR verification.
More information is available here.
Related:
On-the-spot sales tax exemptions for Washington resalers
DOR replaces resale certficates with resellers' permits
Audits become more likely as state agencies look for money
Best to be prepared, take advantage of tax savings opportunities