Agriculture Exemption Permit

Agriculture Exemption Permit Information and Application Requirements

 

What is an AG Exemption Permit?

An Ag Exemption Permit exempts you from paying sales tax when you purchase farm equipment or supplies. A trade-off for this savings is that you report your farm equipment to the county for annual taxation. Based on what you’ve reported, the assessor’s office creates a farm personal property account in your name. Each year you will be mailed a tax bill related to this account that is separate from your real estate ad valorem tax. You will also be mailed Form 924. This form lists all the farm equipment you reported when you applied for your permit. You should review this list and update it according to any equipment added, sold or discarded. Return the 924 to the assessor’s office by the deadline of March 15th to avoid tax penalties.

 

What are the qualifications for the exemption?

To qualify for an AG Exemption Permit you must be conducting a “for profit” business in ranching or farming. You are not required to make a profit, but your business efforts should indicate a serious effort to do so. Farming only for hobby or personal use excludes you from being eligible for the exemption.

 

How do I apply?

To apply for an AG Exemption Permit, contact the Logan County Assessor’s office at 405.282.3509. We can assist you in preparing and/or submitting an application to the Oklahoma Tax Commission. You can also apply online at oktap.tax.ok.gov, but will need to have the appropriate documentation to attach to your online application.

 

What documentation do I need?

The Oklahoma Tax Commission now requires new applicants to submit a 3 year business plan as a “start up” farm on OTC Form 13-8. The assessor’s office can provide the form and assist with its completion as needed.   Marijuana growers must provide a certificate of license with their application. FFA AND 4-H students will need a letter from their sponsor.

 

What do I need to do to renew my permit?

As of Nov. 2020, OTC now requires a copy of your Schedule F (Form 1040), Profit or Loss from Farming, OR a copy of Form 4835, (Farm Rental Income and Expenses), OR a copy of Form 1065 (U.S. Return of Partnership Income). You will need this documentation when applying through the assessor’s office or online. Without it, OTC will not renew your permit. If you have none of these forms, call the assessor’s office and we will advise you of your options.

How long does it take to receive my permit?

Once your application has been approved, OTC will issue your exemption card. It should arrive in the mail in approximately 5-7 business days. If you owe unpaid personal property tax, your card will not be renewed until the tax is paid.

How long is my permit in effect?

Typically 3 years, unless you let your card lapse and are applying in an off year. The expiration year is printed on the card and the month of expiration is always June.

How do I use my exemption permit?

When you purchase farming supplies or equipment, show the vendor your permit.

Questions? Call the Logan County Assessor’s Office at 405.282.3509