RV-F1308401 (2-17)
Tenn. Code Ann. § 67-6-207 provides a sales and use tax exemption to “qualified farmers and nurserymen” for the
purchase of specifically listed agricultural items. A qualified farmer or nurseryman is defined as someone who:
1) is the owner or lessee of agricultural land from which $1,000 or more of agricultural products were produced and sold
during the year, including payments from government sources,
2) is in the business of providing for-hire custom agricultural services for the plowing, planting, harvesting, growing,
raising, or processing of agricultural products or for the maintenance of agricultural land,
3) is the owner of land that qualifies for taxation under the provisions of the Agricultural Forest and Open Space Land
Act of 1976,
4) has a federal income tax return that contains business activity on IRS Schedule F, farm rental activity on IRS Form
4835, and/or farm rental activity on IRS Schedule E, or
5) can otherwise establish to the satisfaction of the Commissioner that he/she is actively engaged in the business of
raising, harvesting, or otherwise producing agricultural commodities as defined in Tenn. Code Ann. § 67-6-301(c)(2).
A Tennessee farmer, timber harvester, or nursery operator wishing to make tax exempt purchases must obtain the
Agricultural Sales and Use Tax Certificate of Exemption prior to making purchases without the payment of tax. Applicants
must complete this form in its entirety and mail it and all requested information to the Department of Revenue at the
address on the front page. If the application is approved, the taxpayer will be issued the Agricultural Sales and Use Tax
Certificate of Exemption. The Department reissues the Agricultural Exemption Certificates every four years.
Taxpayers that receive the exemption certificate must provide their vendors with a copy of the certificate, a copy of the
exemption card included with the certificate, or a fully completed Streamlined Sales Tax Certificate of exemption, which
must include the Agricultural Exemption Number printed on the certificate.
Agricultural items that may be purchased tax exempt include appliances used directly and principally for the purpose of
producing agricultural products including nursery products; equipment used exclusively for harvesting timber; gasoline or
diesel used for agricultural purposes; seeds, seedlings, plants grown from seed; fertilizer; pesticides; livestock and poultry
feeds; and drugs used for livestock.
Instructions:
1) - 5) Business information.
6) Indicate the type of entity.
7) Indicate the type of legal ownership of the entity.
8) You must meet at least one of the listed criteria in order to qualify for the exemption. Indicate which criteria are
met. You must submit with this application the following supporting documentation depending on the criteria
that is selected.
a) Proof of government payments and/or copies of tax returns reflecting income information.
b) Copies of Form 1099.
c) A copy of the qualification of the land under the Agricultural Forest and Open Space Land Act.
d)(i) A copy of Schedule F.
d)(ii) A copy of Form 4835 or Schedule E, whichever is applicable.
e) A detailed statement of why you should qualify for the agricultural exemption. If you have recently begun
agricultural operations or have just acquired your land, you also should submit a business plan that
includes the following information:
Date the land was acquired.
Number of acres under cultivation and/or breed and number of livestock being raised.
Projected date of first sale of agricultural product and projected income.
Marketing plan (how will you sell your agricultural product?).
