How to Get Farm Sales Tax Exempt Status in Ohio

By John Comerford
In Ohio, farmers wishing to avoid paying sales tax or incurring it on their own sales have at least some means to do so.
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In Ohio, Farm Sales Tax Exempt Status does not remove sales tax for a specific farm or farmer, but it does do so on specific items for the production of farm products for sale. Of course, no summary of tax law can ever be complete enough to cover all items exempt from sales tax. On any matter of taxation, bureaucrats and lawyers do have to make the final decision. To estimate the possible exemption of a purchase or sale, however, a farmer may want to use some rough guidelines.

To get the appropriate forms call the Ohio Department of Taxation.
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Contact the Ohio Department of Taxation at 888-405-4039 to request unit exemption forms for single sales to a buyer or blanket exemption forms for any group of sales to the same buyer.

Ohio taxes personal vehicles.
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Exclude any vehicles for personal transportation, even the transportation of goods to or from the farm, over major highways, from tax exemption. Regardless of their use as on the farm, the state of Ohio will tax them.

Seeds, fertilizers, insecticides, pesticides, field tiles, tractors, plows and combines are among the items exempt from sales tax on a working farm in Ohio.
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Fill out appropriate forms for all purchases of seeds, fertilizers, insecticides, pesticides, field tiles, tractors, plows and combines for the farm. Do the same for any sales of any of these things to any other commercial farm.

In Ohio, farm vehicles able to serve as rotors to apply chemicals and fertilizers are exempt from sales tax.
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Fill out appropriate forms for all purchases of motor vehicles able to transfer rotary power to other machines or sales to other farms of motor vehicles able to transfer rotary power to other machines. The state of Ohio also exempts this sort of vehicle, but in such a case, one or more farms will have to use it to apply chemicals and fertilizers.

Ohio does not tax the sale or construction of grain bins for farms.
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Fill out appropriate form for purchase of grain bins. The state of Ohio exempts costs for material, labor and contracting fees for grain bins on commercial farms from sales tax.

Any sale of farm goods to a purchaser from outside Ohio is exempt from sales tax if that buyer transports it and sells it out of state.
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Fill out appropriate form for all sales from a commercial farm to any out-of-state retailer. Said retailer must ship the product in their own transportation and sell it out of state to qualify for this exemption, however.

Any equipment for the production of eggs is exempt from sales tax in Ohio.
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Fill out appropriate forms for all sales and purchases of equipment for the production of eggs to any commercial farm.

Mail copies of the forms above with your tax forms
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Include legally acceptable copies of all the forms with tax forms for the Ohio Department of Taxation.

Keep adequate records of all relevant sales and purchases to deal with future questions.
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Keep the original tax exclusion forms for all sales and copies of the forms on all purchases available for later review. Ohio law mandates the seller of any sale exempt from sales tax to retain these forms, but a buyer also may need a record of relevant transactions.

About the Author

John Comerford writes for "Discuss America," having previously worked for the same editor on Yahoo's "Third Party and Independents" page. He has written for "The South Shore Skeptic" and he won 1st place in WriteOn's 2010 competition for a travel article on a place the writer had never visited.