If your going to use it for anything like land cleaning, Hay and pasture maintenance, crop gardening, tree removal growth etc you do not have to "have" anything but a purpose and you may already be eligible. It does't say your currently doing it. But it states your purpose of use fht the equipment. You simply sign a form that your going to do that sort of thing and that your taking the exemption to do that for this equipment. Easy to do and they will prepare the form for you. If your going to do commercial type work then maybe you wouldn't want to do this. But you'd have other options to write of the tax if you were doing that sort of thing with it. It does not depend on you having anything else but the proper intent of use the equipment really.
If that were not true then SC would still expect you to pay taxes on that tractor no matter where you got it. See below quoted article. SC taxes out of state purchases. How would they find you to enforce that? Well... maybe never would but it is the case...
Talk to Randy and he will tell you how to do it.
I'm just a land owner as well. Not a full time or classic type farmer or anything like that. I do some related farm stuff. Some of my property is in agricultural exemption for property tax purposes but its a small plot. I simply use my equipment to maintain it and do my subsistence farm like stuff.
Sales and Use Tax
A state 5 percent sales tax is imposed on retail sales of
tangible personal property (items) in South Carolina.
The state 5 percent use tax is imposed on items purchased
from out of state that would be subject to sales
tax if purchased in South Carolina. The purpose of the
use tax is to complement the state sales tax. In addition
to the state’s basic rate, some counties currently impose
a local sales and use tax of 1 to 2 percent.
However, the sales and use tax law provides several
exemptions for agriculture, as outlined in South
Carolina Code §12-36-2120. Exempt items include livestock,
feed, agricultural chemicals and soil conditioners,
seeds and seedlings, farm machinery and parts, and containers
used for the sale of agricultural items. Farmers
who want to use this exemption should complete a
copy of Department of Revenue Form ST-8F
(Agricultural Exemption Certificate) and have it on
file with each retailer with whom they make sales
or purchases.
Farm products also can be sold tax-free, as long as the
product is sold by the producer or by members of the
producer’s immediate family; the product must also be
sold in the original state of production, with no further
processing.
Buying from the dealer you intend to use and getting the services he can provide is going to make a lot of difference. More than you think. He's going to take care of his customers first. Its how the dealer network works.
Look into it. Im betting your more eligible than you think. Talk to them about the tax issue. They do this every day. Costs you nothing to discuss it before you buy and you'll be in a better place.
