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IS THE ITEM SALES TAX EXEMPT?
A frequent question on the WIB Hotline is whether an item
purchased for use on the farm is sales tax exempt. This is not always
an easy question for the purchaser to answer. Luckily WIB has
years of expertise in this area and we are only a phone call away.
First, it is important to realize that not all items purchased for use on
the farm are exempt from the sales tax. Items such as feed, seed, and
milk house supplies, to list a few, are sales tax exempt. But hand
tools, silo chutes and barn scrapers, again to name a few, are subject to
the sales tax. If you are a member and have any questions on whether
an item is exempt we encourage you to call the WIB Hotline or you can
also call the Wisconsin Department of Revenue directly at 608-266-2776.
The Department of Revenue has also put out a publication on sales and use
tax exemptions you might want to read. Just click here:
Exemptions Publication
The next question is how do you, as a farmer, prove that you are sales tax
exempt on items? There is no ID number but there is a form that you
can print out, fill in, sign and present to the seller. It is:
Sales Tax Exemption Certificate
The final question WIB receives on this issue is: How do I get
a refund for the sales tax I paid on an exempt item? To do that you
have to fill in two forms and send them in to the Wisconsin Department of
Revenue. For your convenience you can print them out here. 1)
Refund Form and 2)
Refund Form Attachment For more information you may want to visit
the Department of Revenue website:
DOR
We hope this information has cleared up some of the questions regarding
sales and use tax exemptions. Remember, if you have questions on this
or any topic relating to your farm or business, please feel free to
contact us. |
