Georgia – Agricultural Exemptions

SALT Report 1508 – Georgia Governor Nathan Deal recently signed legislation that expands the sales tax exemptions provided to agricultural producers.  Effective January 1, 2013, an exemption from sales and use tax is available for purchases of agricultural production inputs, energy used in agriculture, agricultural machinery, and equipment.
The bill defines agricultural producers as a person or entity that meets one of the following criteria:
  • Owns or leases agricultural land or other real property from which $2,500 or more of agricultural products were produced and sold during the year,
  • Is in the business of providing custom agricultural services for hire,
  • Owns land that qualifies for taxation as bona fide conservation use property under the Georgia Forest Land Protection Act,
  • Is in the business of producing long-term agricultural products from which there might not be annual income (such as timber or pecans), but for which the applicant can demonstrate that at least $2,500 in annual sales will occur in the future, or
  • Is actively engaged in the production of agricultural products or has sufficient volume to generate at least $2,500 in annual sales

Anyone meeting any of the above criteria can apply to the state’s commissioner of agriculture and request an agricultural sales and use tax exemption certificate.

For Further Information:

Georgia Legislature – HB 386 Laws 2012