Farming Exemption Does Not Apply to Residential Gardening in Arkansas

Monday, May 7th, 2018

 
 
Close-up of residential vegetable garden.
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Arkansas
General

The Arkansas Department of Finance and Administration ruled that a utility vehicle used for residential gardening did not qualify for the state farming exemption.

The taxpayer claimed the farming exemption on the purchase of a utility vehicle. The vehicle was used to tend and maintain a 100- by 150-foot vegetable garden. The taxpayer consumed the vegetables grown in the garden but also sold some to the community.

Arkansas exempts equipment that is used exclusively and directly in commercial farming. The "exclusive use" requirement means the exemption does not apply to residential gardening. The taxpayer was unable to provide evidence that he was engaged in commercial farming, so he could not claim the exemption.

https://www.ttrus.com/Residential Gardening in Arkansas


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