(Source: TN Department of Revenue)
Under a new state law, qualified farmers, timber harvesters, and nursery operators can buy more items tax-free this year. The list of tax-free items includes building material, fencing material, warranties, and most other items of tangible personal property used primarily in agricultural operations.
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.
For more information about the agricultural sales tax exemption, review the notice andtax manual on the Department of Revenue’s website. For questions, please call 615-253-0600 or email revenue.support@tn.gov.