NY Farmer's Exemption Certificate

[danno]

In NY, I know in order to qualify for farm exemption for property taxes you have to have gross sales of at least $10,000 over a two year period.

Does anybody know the rules for exemption of sales tax on purchases of maple equiptment/supplies in NY? Do you know if we have minumum gross sales to qualify?

I have the NY Form ST-125, and it speaks to gross sales for commerical hourse boarding ($10,000/year), but is silent on sales for other farming.

[3rdgen.maple]

I cannot directly answer you Danno but here is a thought for you to ponder. Why not for the low low price of 10,000 dollars a year you rent the land, equipment and trees to produce syrup that you personally own to a Maple business that you own as a seperate entity and then you could qualify for the exemption. Atleast I think you could and it might be worth looking into, but might have to do it quick cause Im sure with NY in the status it is exemptions are probably on the shortlist.

[maple flats]

As long as you file for farm income you can claim farm exemption on most purchases associated with the operation of the farm. There is a long list of what qualifies and what does not.
To purchase from any vendor you just file the ST-125 form. Check "blanket purchase" and you do not need to fill out a form each time. I try to carry the forms with me in case I buy from a new supplier.

[dnap63]

The "10k exemption" that was refered to is actually an agricultural assesment. You must make $10,000 gross income on 7 acres or more for two consecutive years to qualify. If you have less than 7 you must produce $50,000 in gross income. If you qualify you can apply to your assessor to get the property tax reduction. I believe that your property may also have to be included in an agricultural district. It is a good idea to have your land included in an ag district, It can help if you get a new neighbor next door and he doesn't like your operation or if you have an over zealous zoning board in your town. The sales tax exemption you file with the vendors you buy from and file a schedule F when you do your taxes to show farm income or loss.

[shane hickey]

Or you can file for the pa116 and get all your property taxes back.shane