The sales tax exemption is only for things used in revenue producing farm activities. If land rental was your only revenue, I'm not sure what you could buy that would be related to that. Maybe some preprinted rental agreement forms.
Farm tax exemption?
- Thread starter willy1947
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AndyMA
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</font><font color="blue" class="small">( Upon further reflection, it is possible that by "revenue generated" you do in fact mean that generated by the agricultural enterprise and NOT the rent money received. If this is the case, then obviously your locality does not fit the model I described above. Apologies if I misunderstood your sentence.
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No apologizes necessary. In Conn the statement you make above is what applies. You have to make the money for the ag tax exemption on sales tax. If you rent the land to a farmer who then qualifies for the sales tax exemption, you as the land owner are still entitled to the property being taxed at the farm or open space rate.
Andy
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No apologizes necessary. In Conn the statement you make above is what applies. You have to make the money for the ag tax exemption on sales tax. If you rent the land to a farmer who then qualifies for the sales tax exemption, you as the land owner are still entitled to the property being taxed at the farm or open space rate.
Andy
To use agriculture as an excuse to reduce your Property Taxes in Texas, you must show agricultural use, but to avoid sales tax on equipment, you only need to live on 4+ acres, and not use the equipment for other purposes, especially commercial.
I've never paid sales tax on a single mower I've bought, and was even offered a no sales tax deal on an ATV from the local dealer. I passed on that one because I knew I'd want to take it to the lake, etc. for recreation.
I've never paid sales tax on a single mower I've bought, and was even offered a no sales tax deal on an ATV from the local dealer. I passed on that one because I knew I'd want to take it to the lake, etc. for recreation.
fishman
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</font><font color="blue" class="small">( but to avoid sales tax on equipment, you only need to live on 4+ acres, and not use the equipment for other purposes, especially commercial.
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That's very interesting. Do you have a source for that information? I'm a little doubtful of that statement to be honest, but it sure sounds good. /forums/images/graemlins/wink.gif
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That's very interesting. Do you have a source for that information? I'm a little doubtful of that statement to be honest, but it sure sounds good. /forums/images/graemlins/wink.gif
BB_TX
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This from a Texas state web site.
<font color="orange"> www.window.state.tx.us/taxinfo/sales/faq_exempt.html </font>
<font color="blue">6. What are exempt uses?
Generally, it means that there are certain uses of a product that are exempt from sales and use tax. For example, the sale of a tractor is taxable, but the sale is exempt if the tractor will be used in commercial farming. It is the certain use of that tractor that makes the sale exempt.
We cannot cover all scenarios of exempt uses, but here are some that you should know.
Farmers and ranchers are not generally exempt from sales and use tax. Some materials and equipment are exempt if used for farm or ranch purposes. Some examples include animals, seeds, feed for farm and ranch animals, machinery and equipment if used for farming or ranch work. See Rule 3.296 "Agriculture, Animal Life, Feed, Seed, Plants and Fertilizer." </font>
Sure sounds like a lot more is required than just living on 4+ acres.
<font color="orange"> www.window.state.tx.us/taxinfo/sales/faq_exempt.html </font>
<font color="blue">6. What are exempt uses?
Generally, it means that there are certain uses of a product that are exempt from sales and use tax. For example, the sale of a tractor is taxable, but the sale is exempt if the tractor will be used in commercial farming. It is the certain use of that tractor that makes the sale exempt.
We cannot cover all scenarios of exempt uses, but here are some that you should know.
Farmers and ranchers are not generally exempt from sales and use tax. Some materials and equipment are exempt if used for farm or ranch purposes. Some examples include animals, seeds, feed for farm and ranch animals, machinery and equipment if used for farming or ranch work. See Rule 3.296 "Agriculture, Animal Life, Feed, Seed, Plants and Fertilizer." </font>
Sure sounds like a lot more is required than just living on 4+ acres.
Soundguy
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Like many have stated... you may qualify for a property tax exemption .. generically called an agricultural exemption. Usually this menas you also have to be filing a schedule F with your income taxes.. unless you are doing conservation stuff.. like planting timber, etc.
You also may be able to get reduced sales tax rate on farm equipment... though not everyone follows this. For instance.. every tractor I've ever bought.. they ask me if I have livestock and ag zoned land. This gets a low sales tax rate of something like 2-3% compaired to our usual 7% Ont he other hand.. implement delaers like the big chain stores.. just charge you the whole tax...
Soundguy
You also may be able to get reduced sales tax rate on farm equipment... though not everyone follows this. For instance.. every tractor I've ever bought.. they ask me if I have livestock and ag zoned land. This gets a low sales tax rate of something like 2-3% compaired to our usual 7% Ont he other hand.. implement delaers like the big chain stores.. just charge you the whole tax...
Soundguy
