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For many agricultural producers in Tennessee, agricultural tax exemption provides an opportunity to invest further in their growing businesses. As certificates expire every four years, eligible producers will need to renew their certificate before the December 31st deadline in order to remain tax exempt.

Tennessee Agricultural Sales and Use Tax Certificates of Exemption are valid for a four-year period and allow producers to purchase many categories of items for their agribusinesses tax-free, such as building material, fencing material, warranties, and most other items of tangible personal property that are used over 50% of the time for agricultural operations. The current validation period expires on December 31st, 2023, and to remain eligible, taxpayers must verify their ability to qualify for the exemption in order to be reissued a certificate. 

In order to be used, tax exemption certificates must be current. Once agricultural tax exemption cards are reissued, expired exemption cards cannot be used for tax-exempt purchases. For producers to avoid unnecessary hassle down the line, the best practice is to renew your certificate before it expires.  

To renew your tax exemption card, renewals may be filed online via the TNTAP site at https://tntap.tn.gov/eservices/_/. A detailed instruction sheet has been provided by the TN Dept. of Revenue at https://www.tn.gov/content/dam/tn/revenue/documents/taxes/sales/agricultural_exemption_renewal_2023.pdf, which explains the step by step process of applying for a renewal. 

If you are a new producer hearing of agricultural tax exemption for the first time, now is a great time to get started! For new producers with growing businesses, the agricultural tax exemption program offers a great opportunity to continue investing in your farming operation or nursery. Those who are interested in applying for a certificate can do so via filling out an application and submitting to the Department of Revenue for consideration. Learn more on the TN Department of Revenue's website: https://bit.ly/3LVNn6V

For more information on which items are required to be provided to our business when purchasing tax exempt machinery, please check out our TN Ag Tax Exemption info page: https://colemantractor.com/specials/tn-ag-tax-exemption.

Source: Agricultural Exemption, TN Department of Revenue. https://www.tn.gov/revenue/taxes/sales-and-use-tax/exemptions-certificates-credits/agricultural-exemption.html#:~:text=Agricultural%20certificates%20of%20exemption%20expire,Department%20to%20reissue%20a%20certificate.

Please note that while this information is provided as a courtesy to our customers, Coleman Tractor Company is not an official source for information regarding tax exemption documents and requirements. For information regarding tax exemption, please consult your tax advisor and the TN Dept. of Revenue.