tax free diesel any ideas? tn?

[Anonymous Poster]

Probably every state is different, but here in Florida, anyone can buy the off-road diesel for off-road purposes (You do have to fill out a form and specify where and how it's being used), but a food-producing farm can also avoid sales tax as well as the road taxes. I simply told them I had a tractor but was not a farm, and they charge me the sales tax. If your rules are similar, maybe your farm coop doesn't like the paperwork involved with doing the sales tax returns, so just avoid it. I owned a propane dispensing operation for a while, and didn't sell any propane for on-road vehicle fuel because I didn't want to be bothered with the paperwork. If most of the coops customers are valid farmers, they may feel the same.

Find the actual oil distributor who supplies them and others with their fuel, and see if they will sell to you. There are dozens of other valid uses for off-road diesel other than farming (construction, stationery engines, etc.) and all those people buy it somewhere.

 

[Chief]

You can buy off road diesel at your Coop. You don't need to have a farm ID #. Go back and ask them to show you in writing that you must have a farm ID #. The Coop guy told me I could buy it, no problem. I live in TN.

 

[Richard]

I had no forms to fill out. I really suspect that in the beginning when I first showed up there, they feared (suspected??) I might use tax free fuel for on road. It's only a gut feel, but that's how I took it.

When they rang it up under "construction use", I dont recall I paid any tax there either (I did look at receipt)

Maybe they just wanted to try to differentiate internally the different types of customer uses they had.


Richard

 

[Anonymous Poster]

I've been jugging mine from a local gas station with the intent of claiming the credit on my taxes, but your post got me curious because I just ran into something else similar posted at a tractor dealership. They had a sign that said no tax free ag sales unless you filed a "Form F."

When I bought my tractor at another dealership there was no mention of any Form F, so this other dealer's sign, coupled with your problem getting off road fuel from the Co-op, sent me off searching the TennesseeAnytime web site. I could find nothing indicating there is any farm registration procedure for ID purposes, nor could I find any Form F that might apply to farming.

I suspect the dealer's sign was referring to an IRS Form 1040, Schedule F, and may have been his own way of protecting himself. Tennessee can go after the seller for the tax lost to a false exemption claim.

The state also requires a copy of your IRS Schedule F to accompany your claim for a refund of state diesel taxes when using taxed diesel for off-highway use on farms. The claim form is PET-371. It can be downloaded from the state web site.

And if the Co-op still wants your farm registration number, give them your tax id number (your SSN in most cases). There would be nothing bogus in that.

SnowRidge

 

[agcomike]

I'm wondering if that's what Tractor Supply Company would need for tax exempt? I buy all my farm equipment so far from farm equipment suppliers (lady and son/king + Tullohoma tractor) all of which i filled a tax-exempt form simply stating i qualify for tax exempt ie (farm,nursery or other non-taxable useage..).. Tractor supply did not say anything about this @ ~10% tax it adds up..

I think i'm going to just have 250gal delivered by a home heating oil supplier i've got a neighbor that lives about 1/2 mile down he apparently has oil heat or a diesel tractor or something i'll just have them swing by my place..

thanks guys i'm interested in finding out more on this tax exempt info for state of TN so if anyone finds out more let us know..

 

[Anonymous Poster]

If I recall correctly, the TN ag sales tax exemption is only available on items that sell for $250 or more--and meet the other criteria, of course.

SnowRidge

 

[agcomike]

TSC says all you need is to indicate your tax exempt.. then what type of farm/ag bussiness you run..

 

[buck1]

Try to find it at a local station. I buy in TN (Giles County) at a local station for 0.99/gallon and there are no questions asked. When they first started selling it I had to sign my name to verify that it was for off-road use but only the first time I purchased it.

 

[Chief]

I just purchased 85 gallons at Jackson Oil Co. In Clarksville. Just had to fill out a sheet that said it was for agricultural use so no sales tax was charged. Was no big deal. Nice folks at the counter. I paid 95 cents a gallon. Where in TN are you at?

 

[LBrown59]

1*I've been trying to get non-highway diesel seems I need a farm id # according to co-op and a lot of the local petrol dealers.
2*how do all these loggers and other non-highway use companies do it?
3*any suggestions?
agcomike
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<font color="#666666"> 1*Any body is entitled to buy off road diesel except those using diesel for highway use.
Being a farmer or using it on a farm has nothing to do with it.
2*They can do it because they aren't using it on the road - You're no different and can do the same.
3*Get away from the petrol dealers and call all of the diesel fuel and home heating distributors in your area. THAT'S WHAT I DID and Boy Am I Glad I Did as I found 3 places to Buy off road diesel and or fuel oil.

You can surely buy home heating fuel oil without a farm id # Heating oil and diesel fuel are all the same stuff around here-as there is no difference between them. Either one will work just fine in your tractor.

Like you I was calling the petrol dealers.
When I ask them where or how I could buy off road tax free diesel none of them knew where or how I could get it. Come to think of it why would they tell me sense they want to sell me their expensive highly taxed on road diesel so why loose me to sellers of the cheaper non taxed off road stuff?
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