Sales of jams or jellies made from fruit grown or produced by a farmer and sold directly by the farmer are not subject to sales tax if the farmer has added nothing more to the preserves than water, salt, sugar, pectin, or preservatives. If any non-raised ingredients, other than water, salt, sugar, pectin, or preservatives are added, the sale of the jams and jellies will be subject to sales tax.
If the farmer has qualified for the Agricultural Sales and Use Tax Certificate of Exemption, the farmer can purchase containers for their farm products exempt from sales tax. In addition, the farmer may purchase the qualifying, non-raised ingredients that become part of the preserves exempt from sales tax using a resale certificate of exemption.
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