Ag Tax Exemptions in NY State

[Carol K]

Am I right in thinking that if I breed cows then I can qualify not to pay the sales tax on any of my feed or anything that is considered tax exempt? I'm not a full time farmer, but from what I have read I qualify, of course making heads and tails of the legal mumbo jumbo is mind boggling.
How do I apply to get this Ag exemption number? I know I have to fill out an ST 125 at the store I purchase at, but just who gives me the Ag Exemption?

Carol

[JeffNY]

With us, we have to show we are making atleast $10,000 off the farm, before we qualify for being "tax exempt".



Jeff

[YuccaFlatsRanch]

All Ag animal feed is tax exempt in Texas. They don't even ask.

[Carol K]

Oh to be in Texas!! LOL

Jeff this link http://www.nyfb.org/images/Brochures/AgSalesTaxEx.pdf says something about 10K but it's about commercial horse boarding, doesn't say anything about anything else?
Just don't know where to get the exemption from. yet.

Carol

[JeffNY]

Horse boarding im not sure of. I just know with us, its $10k that has to be made, in order to be exempt.


Jeff

[annie716]

Carol, most businesses will have the form for you to fill out. If you don't have a tax id number you use your social security number. Vendors will generally apply for a tax id and file quarterly reports for sales tax but that isn't necessary for tax exempt status for farming. I think you read the info right, I didn't see anything that says you have to make any amount of money unless your business is horse boarding.

[JulieLou42]

I think Idaho has some such exemption, too, and I know of one on property taxes, but I don't recall the ag-income one has to generate to qualify.

[steff bugielski]

Even if you qualify for the tax exemption you must report the income from those cattle on you income tax.

[Teacupliz]

I have claimed my farm for about 4 years now in my taxes. Get all our feed and farm supplies tax free. If you eat your chicken eggs you quailfy. With our new dairy I do not have to pay tax nor charge it. I talked to NYS and Federal taxation. At least one good thing for a samll business. and you do not have to make $10,000
Liz

[sycamore]

Here is the link to copy the form: http://www.tax.state.ny.us/pdf/2004/st/st125_204.pdf

Both sides need to be copied. Just print it, fill out and leave copy on file at any store you purchase things farm related. Feed, minerals, seed, fertilizer, equipment, supplies, ect.... When you purchase things say you are tax exempt and they usually look it up to verify.

No tax id number as you aren't paying tax on it, nor collecting tax. Just the form filled out and on file. I don't see an farm income amount. The $10,000 if for the property tax thing.

[Carol K]

Thanks guys,
Sycamore, that's the form I found to. So I'm going to fill it out and go from there.

Carol

[sycamore]

Here's some more info on this site that someone sent me. http://www.nyfb.org/facts/tax.htm