from Ed Browning, Ag and Natural Resources Engineer, Jasper County
Every year, usually around springtime, we receive calls about where to get a farm tax id. There are two types of issues with this. First, if you are selling a product as a supplier to a consumer, you more than likely need a sales tax number in order to collect the sales tax and render to the Missouri Department of Revenue. The other would be to declare exemption from paying sales tax on certain agricultural supplies and equipment. Typically these calls are in regard to the latter.
Exemption from paying sales tax on agricultural purchases doesn’t require an id number, but a form must be filled out and given to each supplier. This form (Form 149, Sales/Use Tax Exemption Certificate) can be found online at http://dor.mo.gov/tax/business/sales/forms/149f.pdf. This exemption is addressed in the Missouri Revised Statutes Chapter 144, Section 144.030, Subsection 7, 22, 29 and 34. If you want to read more about items exempted from sales tax, go to MRS 144.030 at http://www.moga.mo.gov/statutes/c100-199/1440000030.htm.
About Me
- Debi Kelly
- As an Extension Associate with the University of Missouri, I work with beginning farmers, small farms, alternative agriculture and organic farming. I am also the Co-coordinator for the Missouri Sustainable Agriculture and Research (SARE) Education Professional Development Program (PDP).
4 comments:
I advise first, if you are selling a product as a supplier to a consumer, you need a tax identification number of sales to raise the sales tax and forced to pay the Missouri Department of Revenue, as do the softball players . The other would be to declare the exemption from sales tax on certain supplies and farm equipment.
Do you need to have half of the previous years income from farming to qualify? The link to the form didn't work. I was told I needed a tax id number to get an egg license to sell eggs. Does this qualify me as farm tax exempt?
If you're a present sole proprietor limited liability business and you are just about to hire your first employee, you have to get a federal tax number for this objective. To know more about apply for a tax id , check here.
We have started 4h projects with our kids currently 4 head of cattle will be selling 1 shortly. How do I find out farm tax exemption status qualifications?
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