Farmers have long enjoyed Ohio Sales tax exemption for many, but not all, items used for production of agricultural commodities. The Ohio Department of Taxation web site has information about sales taxes and includes the following responses for commonly asked questions: www.tax.ohio.gov .
As a farmer, may I claim exemption on my purchases and how?
“Farmers are entitled to claim exemption on the purchase of items of tangible personal property used directly in the production of a product for sale . This would include, but is not limited to: seeds, fertilizers, insecticides, pesticides, field tiles, tractors, plows, combines, and specially designed motor vehicles with PTO applicator units that travel from farm to farm to apply chemicals and fertilizers. This would not include: almost all motor vehicles licensed to operate on the highway [passenger cars; pick-up trucks; larger trucks and trailers that are primarily used to haul people, animals, raw materials (seeds, fertilizers, insecticides and pesticides) to the farm and finished goods (corn, wheat, soy beans, cattle, hogs, etc.) from the farm to market], lawn mowers, weed eaters, items used to maintain set-a-side fields, chain saws, all purposes vehicles that are primarily used for recreation, and home garden equipment.”
“To claim exemption, a properly completed exemption certificate must be given to your supplier.”
How do I obtain a sales tax exemption number?
“The State of Ohio does not issue a sales tax exemption number. A vendor’s license number is NOT a sales tax exemption number. To claim exemption, you must provide a properly completed exemption certificate to your supplier.”
How will I know if a sale is exempt from the tax?
“Sales tax must be charged on all retail sales unless the purchaser provides a properly completed exemption certificate stating the statutory reason for claiming exemption. The vendor must retain the certificate as proof of nontaxable sales. Exemption certificates are prescribed by the Tax Commissioner and can be obtained from a local printer or office supply store. Sample forms are available on the Ohio Department of Taxation website.”
“Exemption certificates are not needed when the item sold is never taxable, such as prescription drugs and food sold for off-premises consumption. Certificates are not needed when the purchaser is clearly identified on the invoice as an entity that is always exempt, such as the federal government, the State of Ohio , or any local government of this state.”
EXEMPTION CERTIFICATE FORMS – Information Release May, 2005
“The following forms are authorized by the Ohio Department of Taxation for use by Ohio consumers when making exempt purchases. Other than as noted below the use of a specific form is not mandatory when claiming an exemption. So long as the consumer provides the vendor or seller with all data elements required for a valid exemption certificate, the vendor may accept the certificate and be relieved of the obligation to collect the tax. Note also that exemption certificates may be presented in either paper or electronic form. Paper certificates require, as one of the data elements, a signature from the consumer. No signature is required on electronic certificates. For more information on the proper use of exemption certificates in specific situations, see Rules 5703-9-03, 5703-9-10, 5703-9-14 and 5703-9-25 of the Ohio Administrative Code.”
General Exemption Certificate Forms
Unit Exemption Certificate. This exemption certificate is used to claim exemption or exception on a single purchase.
Blanket Exemption Certificate. This certificate is used to make a continuing claim of exemption or exception on purchases from the same vendor or seller.