FARM EQ EXEMPTION

Ag Fertilizer Spreaders

Ag Sprayers Parts & Hoses 

The sale of machinery or equipment used in planting, cultivating, and harvesting farm products, or used in the production of agricultural products, livestock, or poultry on farms, as well as the parts, attachments or replacements for any such machine, are taxable at the reduced farm rate of sales or use tax (1.5% state tax, plus applicable local taxes).

The terms “machine, machinery, and equipment” are understood to mean items such as tractors, detachable plows, harrows, planters, cultivators, fertilizer spreaders, plow stocks, turning plows, seed drills, and sprayers. The general rate of tax applies to all hand tools.

With regard to irrigation equipment, equipment above ground is taxed at the reduced farm rate. Irrigation equipment below ground is considered building material, and, therefore, taxed at the general rate.