Sales and Use Tax Farming Exemptions Expanded

For Release: June 29, 2007
Contact: Meredith Helgerson, Communications Officer, (608) 261-2271

MADISON — The Wisconsin Department of Revenue announces that the sales and use tax farming exemptions have been expanded, effective July 1, 2007. Similarly, a sales and use tax exemption will also apply for persons engaged in the business of Silviculture, effective July 1, 2007.

The Farming Exemption expansion includes the gross receipts from the sale of and the storage, use or other consumption of lubricants, nonpowered equipment, and other tangible personal property that are used exclusively and directly, or are consumed or lose their identities, in the business of farming, will be exempt from Wisconsin sales and use tax.

In addition, the definition of “farming” is expanded to include silviculture. Silviculture means the business of raising trees for timber, lumber and other wood products, including the logging of timber when it is performed by a person engaged in the business of silviculture and the logging is conducted with respect to timber produced as a result of that person's silviculture activity. It does not include pulp or sawmill operations.

Additional information about these changes, including examples of items which will qualify for exemption and an explanation of the requirements for exemption, is provided in Publication 221, Farm Suppliers and Farmers, How Do Wisconsin Sales and Use Taxes Affect Your Operations?. This publication is available at www.revenue.wi.gov/pubs/pb221.pdf.

A tax release explaining the sales and use tax farming exemptions for silviculture is available at www.revenue.wi.gov/ise/wtb/152tr.pdf.

The revised sales and use tax exemption certificate, Form S-211, is available at www.revenue.wi.gov/forms/sales/index.html.

 

Last updated June 29, 2007