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Form S-3a - Vermont Sales Tax Exemption Certificate For Agricultural Fertilizers, Pesticides, Supplies, Machinery & Equipment - 2016 Page 3

FORM S-3A Instructions

Vermont Sales Tax Exemption Certificate for

Agricultural Fertilizers, Pesticides, Supplies, Machinery & Equipment

General Information

Please print in BLUE or BLACK ink only.

To learn how each exemption should be applied, please see the Department of Taxes fact sheet titled "Agricultural

Machinery, Equipment & Supplies: Taxable or Tax Exempt?" available on the Department's website at

Agricultural Machinery and Equipment

This certificate is used to document exemption from Vermont Sales Tax for agricultural machinery and

equipment that is predominantly, meaning 75% or more, used in the production for sale of tangible personal

property on farms, orchards, nurseries, or in greenhouses or other similar structures used primarily for the

raising of agricultural or horticultural commodities for sale.

List of Potentially Exempt Agricultural Supplies

Not all products used for agricultural purposes are exempt. In addition, sometimes an exemption certificate

is necessary when purchasing supplies for agricultural use, sometimes it is not. First, the item must be in

one of the following categories:

• Agricultural feeds

• Agricultural seed

• Agricultural plants

• Baler twine

• Silage bags

• Agricultural wrap

• Sheets of plastic for bunker covers

• Liming materials

• Breeding and other livestock

• Semen breeding fees

• Baby chicks

• Turkey poults

• Agricultural chemicals other than pesticides

• Veterinary supplies

• Farm animal bedding

If an item does not fall into one of the listed categories, then it is subject to sales tax. If the item is on the

above list, then there is a second test: Is the item typically used in agriculture? If the item is typically used

in agriculture, then the item is not subject to tax and anyone may purchase the item without an exemption

certificate.

However, if the item is on the list above but not typically used in agriculture, then it is only exempt if an

exemption certificate is used which provides proof that the item will be used for an agricultural purpose.

Items are not typically used for agriculture when they are more commonly used for non-farming activities.

Examples include grass seed, flowering plants, and pet food.

Form S-3A Instructions

Page 3 of 4

Rev. 07/16

Form S-3a - Vermont Sales Tax Exemption Certificate For Agricultural Fertilizers, Pesticides, Supplies, Machinery & Equipment - 2016 Page 3