Sales to Commercial Farmers Taxable Without Proof of Exemption

Wednesday, May 10th, 2017

 
 
A tractor working a commerical farm.
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Arkansas
Retail

The Arkansas Department of Finance and Administration recently upheld a sales tax assessment against a retail seller of farm and agricultural supplies.

The taxpayer primarily made sales to commercial farmers, but the store was also open to the public. When making exempt sales, the taxpayer did not obtain proof that its customers qualified for an exemption.

Arkansas provides several exemptions that apply to commercial farmers. To make an exempt sale, sellers must obtain proof that customers qualify for an exemption. At a minimum, the seller must obtain a signed exemption claim.

The taxpayer was unable to provide proof that its sales were exempt. As a result, the sales tax assessment was upheld.

https://www.ttrus.com/sites/default/files/ar/17-382.pdf


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