139.481 Agriculture exemption license number required for exemption -- Eligibility
800 words·~4 min read·
/ky/139-481A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
for application -- Documentation to seller for receipt of exemption --
Administrative regulations -- Expiration and renewal of exemption number --
Searchable database of agriculture exemption numbers.
(1)On and after January 1, 2023, every person claiming an exemption provided under
KRS 139.480(4) to (9), (11),
(13)to (15),
(23)to (30), and
(33)shall provide to the
seller or retailer a valid agriculture exemption license number issued by the
department.
(2)A person is eligible to apply for an agriculture exemption license number if the
person is:
(a)Regularly engaged in the occupation of tilling and cultivating the soil for the
production of crops as a business;
(b)Regularly engaged in the occupation of raising and feeding livestock of a kind
the products of which ordinarily constitute food for human consumption;
(c)Raising and feeding poultry;
(d)Producing milk for sale; or
(e)Regularly engaged in raising ratite birds, llamas, alpacas, buffalos, cervids, or
aquatic organisms as an agricultural pursuit.
(a)On and after January 1, 2023, persons that receive an agriculture exemption
license number and choose to claim the exemptions outlined in subsection
of this section shall, at least one
(1)time, provide the seller or retailer from
whom they purchase exempt tangible personal property with one
(1)of the
following:
1. The agriculture exemption license number issued by the department; or
2. A fully completed Streamlined Sales Tax Certificate of Exemption
which shall include the agriculture exemption license number.
(b)A purchaser that has met the requirements of paragraph
(a)of this subsection
may issue the agriculture exemption license number to the seller or retailer for
subsequent purchases as evidence of an exempt purchase for as long as the
agriculture exemption license number is valid.
(c)Persons that meet the requirements of subsection
(2)of this section but have
not yet received an agriculture exemption license number from the department
prior to January 1, 2023, may issue a fully completed exemption certificate or
a fully completed Streamlined Sales Tax Certificate of Exemption without the
agriculture exemption license number prior to January 1, 2023.
(a)The department, by administrative regulation, shall develop an application
form for the agriculture exemption license number and procedures by which
the application form may also be submitted either electronically or by paper
filing.
(b)The application shall include:
1. The person's name and mailing address;
2. The farm address, if different from the person's mailing address;
3. An affirmation that the person meets at least one
(1)of the criteria
outlined in subsection
(2)of this section;
4. The person's driver's license number; and
5. One
(1)of the following forms of documentation:
a. IRS Schedule F, Profit or Loss from Farming;
b. IRS Form 4835, Farm Rental Income and Expenses;
c. The farm service agency number or numbers assigned by the
United States Department of Agriculture pertaining to the parcels
of land on which agriculture activity will take place; or
d. Any other type of information that may establish to the satisfaction
of the Commissioner that the applicant qualifies for the agriculture
exemption license number.
(a)The agriculture exemption license number shall expire on December 31, 2026,
and every four
(4)years thereafter, or when the person ceases to engage in the
agriculture activity for which the agriculture exemption license number was
granted, whichever comes first.
(b)When a person ceases to engage in the agriculture activity for which the
license number was granted, the person shall notify the department within
sixty
(60)days.
(c)The person may apply for a renewal of the agriculture exemption license
number prior to the expiration date if the person continues to meet the
requirements of subsection
(2)of this section and provides documentation
required by subsection (4)(b)5. of this section. The department shall, by
administrative regulation, prescribe the electronic process for renewing an
agriculture exemption license number.
(a)On or before January 1, 2023, the department shall develop and provide an
online searchable database on the department's website that the seller or
retailer may use to confirm the agriculture exemption license number if the
purchaser cannot produce documentation of the agriculture exemption license
number at the time of sale.
(b)To search the database, the seller or retailer shall provide the name of the
person assigned the agriculture exemption license number and one
(1)of the
following:
1. The agriculture exemption license number;
2. The agriculture exemption license number expiration date;
3. The person's driver's license number;
4. The farm service agency parcel number; or
5. Any other unique identifier that may be accepted by the department.
(c)The seller or retailer shall be relieved of the liability for collecting and
remitting the sales and use tax if the seller or retailer meets the requirements
of KRS 139.260 and 139.270.