Farm Diesel Question

[timer]

I just got my bill for having my diesel tank filled up at the farm. The supplier charged me sales tax.

I have my certification from the state that exempts me from sales tax on farm supplies - but the supplier said it doesn't apply to fuel for tractors.

Is this correct?

 

[Mt Pokt]

Agriculture Exemption Number Now Required for Tax Exemption on Farm Purchases | Agricultural Economics

agecon.ca.uky.edu

Farmers encouraged to apply for new agricultural exemption number

Deadline for current farmers is Jan. 1, 2022

www.kyagr.com

There has been no changes to what's tax exempt, only the hoops you have to jump through.

 

[1wildcatfan]

Highway tax is not paid on off road diesel.

 

[bigpuddin43]

if you havent taken them your tax exemption form they have to charge it. coop told me this year without the form they have to charge it on everything without the completed form

 

[DH13]

Have to have tax exemption number now. But he is wrong saying it dont apply for tractors. Thats where the most fuel is used in tractors. Got 500 gallon last week. No tax on it.

 

[bigbonner]

I just got my bill for having my diesel tank filled up at the farm. The supplier charged me sales tax.

I have my certification from the state that exempts me from sales tax on farm supplies - but the supplier said it doesn't apply to fuel for tractors.

Is this correct?

They are wrong.

Kentucky Farmers Can Now Apply For New Agriculture Exemption Number - Department of Revenue

revenue.ky.gov

 

[timer]

They are wrong.

Kentucky Farmers Can Now Apply For New Agriculture Exemption Number - Department of Revenue

revenue.ky.gov

I have this number and have provided it to the supplier....

 

[DH13]

I have this number and have provided it to the supplier....

He is dead wrong. No tax on farm fuel.

 

[bigbonner]

I have this number and have provided it to the supplier....

Read the whole KRS law

https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53350

(15) Gasoline, special fuels, liquefied petroleum gas, and natural gas used exclusively and directly to: (a) Operate farm machinery as defined in subsection (11) of this section; (b) Operate on-farm grain or soybean drying facilities as defined in subsection (13) of this section; (c) Operate on-farm poultry or livestock facilities defined in subsection (14) of this section; (d) Operate on-farm ratite facilities defined in subsection (23) of this section; (e) Operate on-farm llama or alpaca facilities as defined in subsection (25) of this section; or (f) Operate on-farm dairy facilities;

 

[bigbonner]

Agriculture Exemption Number Now Required for Tax Exemption on Farm Purchases | Agricultural Economics

agecon.ca.uky.edu

 

[bigpuddin43]

I have this number and have provided it to the supplier....

there is a form you have to fill out with the number that has to be provided to them.

 

[timer]

Thanks everyone. I agree with each of you. My wife called the guy yesterday. I will pay him a visit tomorrow.

I have the number on file at Southern States and TSC and a couple of other places and I'm not being charged tax for farm items at those vendors. I can't understand why this guy - who I believe is a good and reputable person - is pushing back.

 

[JR in KY]

Glad you mentioned this. I had to get a Fuel Tax Exemption number because I had to go to another supplier. THAT musta taken care of it but you have to have ANOTHER number to get Tax Exempt on everything else.
It took me 6 months to get That one...filled out form 3 times. Finally got thru on Phone ( about 20 tries) and nice white lady said: " We have your Form right here...don't know Why someone didn't send you your number." I know why.

 

[bobtownhunter]

Guy I help some has been dealing with getting fuel tax exempt no. Won’t bring no fuel until u got no. He had call Frankfort

 

[carnivore]

Thanks everyone. I agree with each of you. My wife called the guy yesterday. I will pay him a visit tomorrow.

I have the number on file at Southern States and TSC and a couple of other places and I'm not being charged tax for farm items at those vendors. I can't understand why this guy - who I believe is a good and reputable person - is pushing back.

Do you have another supplier you can take your business to in the future? Might be your only recourse if he digs his heels in unless the SOB is a crook. In that case tell him you plan to open a revenue investigation on him. Hopefully its just an honest mistake, but he needs to do due diligence and make a few phone calls.