Okla. Admin. Code § 710:65-13-18

Current through Vol. 42, No. 4, November 1, 2024

Section 710:65-13-18 - Proof of agricultural tax exemption

In order to qualify for the exemptions provided in 68 O.S. § 1358, the purchaser must provide proof of eligibility to the vendor.

(a) Proof of eligibility is based on the issuance of an agricultural exemption permit, which is obtained in the following manner:

(1) All persons, regardless of residency, who are engaged in farming or ranching operations in this state, may obtain an agricultural exemption permit by listing personal property used in the farming or ranching operation with the county assessor each year, as provided by law. If the assessor determines that the personal property is correctly listed and assessed for ad valorem taxation and the county treasurer certifies that the person has no delinquent accounts appearing on the personal property tax lien docket in the county treasurer's office, the assessor shall certify the assessment upon a form prescribed by the Commission. One copy shall be retained by the assessor, one copy shall be forwarded to the Oklahoma Tax Commission, and one copy shall be given to the person listing the personal property. Upon verification that the applicant qualifies for the exemptions authorized by Section 1358, and that the applicant has no delinquent accounts appearing on the personal property tax lien docket in the office of the county treasurer, a permit shall be issued as prescribed by this paragraph. The permit shall be renewable every three years.

(2) A person who does not otherwise qualify for an agricultural exemption permit shall file an application with the Commission providing proof of eligibility for the sales tax exemptions. The application shall be certified by the applicant that such applicant is engaged in custom farming operations or in the business of farming or ranching. If the applicant is a corporation, the application shall be certified by a legally constituted officer thereof.

(3) If the application does not contain sufficient information to show that the applicant is engaged in farming, ranching, or agricultural production for profit, the Commission may request additional information from the taxpayer, from a division, another agency, or from any other source, in order to determine eligibility.

(4) If the application is denied, the applicant has a right to a hearing, in conformity with Section 710:1-5-100.

(b) Use of the agricultural exemption permit is subject to the provisions set out in this Subsection:

(1) To establish eligibility for the sales tax exemption, residents of other states who are engaged in custom farming operations in this state must provide the vendor with proof of residency; the name, address, and telephone number of the person engaging the custom farmer; and certification on the face of the invoice, under the penalty of perjury, that the property purchased will be used in agricultural production.

(2) If an agricultural exemption permit-holder purchases tangible personal property from a vendor on a regular basis and has previously established eligibility, the vendor may make subsequent sales without requiring proof of eligibility for each sale. However, the permit-holder must notify the vendor of all purchases which are not exempt from sales tax and remit the applicable tax.

(3) A purchaser who uses an agricultural exemption permit or provides proof of eligibility to make exempt purchases of items not authorized by law shall be subject to a penalty in the amount of Five Hundred Dollars ($500.00).

Okla. Admin. Code § 710:65-13-18

Amended at 10 Ok Reg 3847, eff 7-12-93; Amended at 11 Ok Reg 3521, eff 6-26-94; Amended at 15 Ok Reg 2827, eff 6-25-98; Amended at 16 Ok Reg 2653, eff 6-25-99; Amended at 17 Ok Reg 2708, eff 6-25-00