SUT-154 - Antique/Model Tractors and Parts Do Not Qualify for Sales Tax Exemption

To qualify for the farm equipment sales tax exemption, a tractor must be used principally in the production of a farm commodity for sale. When the intent of the sale of a tractor is to restore the tractor for show, collection, or investment purposes, the sale of the tractor does not qualify for exemption from sales tax.

While dealers can buy parts that they will use to restore a tractor on a resale certificate, the subsequent sale of the tractor--unless it is used for the purpose of producing a farm commodity for sale or other tax exempt purpose--it is subject to sales tax. In addition, the sale of parts for tractors that are not used in an exempt capacity, are subject to sales tax.

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