In general, the sale of farm equipment and machinery is taxable. However, certain sales and purchases are partially exempt from sales and use tax.
The partial exemption applies only to the state general fund portion of the sales tax, currently 5.00%.
Three requirements must be met for the partial exemption to apply. The item must be:
Sold to a qualified person
Used exclusively or primarily in producing and harvesting agricultural products. Primarily means 50% or more of the time.
Farm equipment and machinery which includes, but is not limited to, any tool, machine, equipment, appliance, device or apparatus used in the conduct of agricultural operations.
Complete the Tax Form HERE