I run an antique tractor business. I buy older model tractors and restore them. However, these tractors will be used for show. Are the tractors and the parts sold to others for these tractors exempt under the law?

No. In order to qualify for farm equipment tax exemption, the tractor must be used principally in
the production of a farm commodity for sale. Here, the intent of the restored tractor is for show,
collection, or investment purposes. While, as a dealer, you can buy the parts that you will use to
restore the tractor on a resale certificate, the sale of the tractors for purposes other than the
production of a farm commodity for sale, or unless otherwise tax exempt, is subject to the sales tax. The same answer applies to the sale of parts for tractors not used in a qualified capacity.

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