Indiana Department of Revenue updates Sales Tax Bulletin No. 9: Agricultural Production Exemptions

The Indiana Department of Revenue has released an updated Sales Tax Bulletin No. 9, which addresses the agricultural production exemptions.  See http://1.usa.gov/LZY327.   The Department describes the changes from the prior bulletin as follows:

This version of the bulletin has been changed from the previous version of the bulletin (May 2012) in two specific ways. First, example #5 on Page 5 has been changed to reflect that the transaction at issue is exempt, not taxable, as it reflected prior to the May 2012 version of this bulletin. Second, a website link available for taxpayers to download a Streamlined Sales and Use Tax Agreement exemption certificate has been added to Page 8.

The modified example #5 states:

Corporation C is engaged in the business of selling agricultural chemicals and fertilizers to farmers. Corporation C purchases an applicator that will be used to spread the chemicals and fertilizer on its customers’ fields. The purchase of the applicator is exempt from tax because the application of fertilizers and agricultural chemicals is necessary and plays a key role in the raising of crops.

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