SUT-159 - Dealers Can Refuse the Agricultural Exemption Certificate

There is nothing in the sales tax statutes or regulations that mandate a dealer to recognize any exemption. A dealer would most likely refuse to allow the holder of an agricultural certificate of exemption or farmer’s affidavit to purchase an item tax free using the certificate if the dealer knew that the item being purchased would not qualify for the exemption.

For example, a dealer should refuse to make a tax exempt sale of a diamond ring if the purchaser presents an agricultural certificate of exemption as the basis for making the purchase tax exempt.