KRS 139.481: Agriculture exemption license number required for exemption -- Eligibility

for application -- Documentation to seller for receipt of exemption --

Administrative regulations -- Expiration and renewal of exemption number --

Searchable database of agriculture exemption numbers.

(1) On and after January 1, 2023, every person claiming an exemption provided under

KRS 139.480(4) to (9), (11), (13) to (15), (22) to (29), and (32) shall provide to the

seller or retailer a valid agriculture exemption li cense number issued by the

department.

(2) A person is eligible to apply for an agriculture exemption license number if the

person is:

(a) Regularly engaged in the occupation of tilling and cultivating the soil for the

production of crops as a business;

(b) Regularly engaged in the occupation of raising and feeding livestock of a kind

the products of which ordinarily constitute food for human consumption;

(c) Raising and feeding poultry;

(d) Producing milk for sale; or

(e) Regularly engaged in raising ratit e birds, llamas, alpacas, buffaloes, cervids,

or aquatic organisms as an agricultural pursuit.

(3) (a) On and after January 1, 2023, persons that receive an agriculture exemption

license number and choose to claim the exemptions outlined in subsection (1)

of this section shall, at least one (1) time, provide the seller or retailer from

whom they purchase exempt tangible personal property with one (1) of the

following:

1. The agriculture exemption license number issued by the department; or

2. A fully completed Streamlined Sales Tax Certificate of Exemption

which shall include the agriculture exemption license number.

(b) A purchaser that has met the requirements of paragra ph (a) of this subsection

may issue the agriculture exemption license number to the seller or retailer for

subsequent purchases as evidence of an exempt purchase for as long as the

agriculture exemption license number is valid.

(c) Persons that meet the re quirements of subsection (2) of this section but have

not yet received an agriculture exemption license number from the department

prior to January 1, 2023, may issue a fully completed exemption certificate or

a fully completed Streamlined Sales Tax Certif icate of Exemption without the

agriculture exemption license number prior to January 1, 2023.

(4) (a) The department, by administrative regulation, shall develop an application

form for the agriculture exemption license number and procedures by which

the application form may also be submitted either electronically or by paper

filing.

(b) The application shall include:

1. The person's name and mailing address;

2. The farm address, if different from the person's mailing address;

3. An affirmation that the per son meets at least one (1) of the criteria

outlined in subsection (2) of this section;

4. The person's driver's license number; and

5. One (1) of the following forms of documentation:

a. IRS Schedule F, Profit or Loss from Farming;

b. IRS Form 4835, Farm Rental Income and Expenses;

c. The farm service agency number or numbers assigned by the

United States Department of Agriculture pertaining to the parcels

of land on which agriculture activity will take place; or

d. Any other type of information that may establish to the satisfaction

of the Commissioner that the applicant qualifies for the agriculture

exemption license number.

(5) (a) The agriculture exemption license number shall expire:

1. On December 31, 2026, and every four (4) years thereafter; or

2. When the person ceases to engage in the agriculture activity for which

the agriculture exemption license number was granted;

whichever comes first.

(b) The department shall extend the December 31, 2026, deadline for a period not

to exceed six (6) months, as needed to allow persons with agriculture

exemption license numbers to renew before expiration.

(c) When a person ceases to engage in the agriculture activity for which the

license number was granted, the person shall notify the department within

sixty (60) days.

(d) The person may apply for a renewal of the agriculture exemption license

number prior to the expiration date if the person continues to meet the

requirements of subsection (2) of this section and provides documentation

required by subsection (4) (b)5. of this section. The department shall, by

administrative regulation, prescribe the electronic process for renewing an

agriculture exemption license number.

(6) (a) On or before January 1, 2023, the department shall develop and provide an

online searc hable database on the department's website that the seller or

retailer may use to confirm the agriculture exemption license number if the

purchaser cannot produce documentation of the agriculture exemption license

number at the time of sale.

(b) To search the database, the seller or retailer shall provide the name of the

person assigned the agriculture exemption license number and one (1) of the

following:

1. The agriculture exemption license number;

2. The agriculture exemption license number expiration date;

3. The person's driver's license number;

4. The farm service agency parcel number; or

5. Any other unique identifier that may be accepted by the department.

(c) The seller or retailer shall be relie ved of the liability for collecting and

remitting the sales and use tax if the seller or retailer meets the requirements

of KRS 139.260 and 139.270.