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Page 2 of 2 ST-125 (11/14)

Instructions

Definitions

As a New York State registered vendor, you may accept

an exemption certificate in lieu of collecting tax and be

Farm production means the production of tangible

protected from liability for the tax if the certificate is valid.

personal property for sale by farming. Farming includes

The certificate will be considered valid if it is:

agriculture, horticulture, viniculture, viticulture,

aquaculture, silviculture, or floriculture; stock, dairy,

• accepted in good faith;

poultry, fruit, vegetable, fur bearing animal, graping,

• in your possession within 90 days of the transaction;

truck, and tree farming; ranching; operating nurseries,

and

greenhouses, vineyard trellises, or other similar structures

• properly completed (all required entries were made).

used primarily for the raising of agricultural, horticultural,

vinicultural, viticultural, silvicultural, or floricultural

An exemption certificate is accepted in good faith when you

commodities; operating orchards; raising, growing, and

have no knowledge that the exemption certificate is false or

harvesting crops, livestock, and livestock products; and

is fraudulently given, and you exercise reasonable ordinary

raising, growing, and harvesting woodland products,

due care. If you do not receive a properly completed

certificate within 90 days after the delivery of the property

including but not limited to timber, logs, lumber, pulpwood,

posts, and firewood. Administrative activities that are

or service, you will share with the purchaser the burden of

predominantly related to farm production are considered

proving the sale was exempt.

to be activities of farm production. Farm production begins

Failure to collect sales or use tax, as a result of accepting

with the preparation of the soil or other growing medium

an improperly completed exemption certificate or receiving

and, in the case of animals, from the beginning of the

the certificate more than 90 days after the sale, will make

life cycle. Production ceases when the product is ready

for sale in its natural state; for farm products that will be

you personally liable for the tax plus any penalty and

interest charges due.

converted into other products, farm production ceases

when the normal development of the farm product has

If the blanket certificate box is marked, you may consider

reached a stage where it will be processed or converted

this certificate part of any order received from the

into a related product.

purchaser during the period that the blanket certificate

remains in effect. A blanket certificate remains in effect

Predominantly means more than 50%, measured, for

until the purchaser gives you written notice of revocation,

example, by hours of usage or by miles traveled.

or until the Tax Department notifies you that the purchaser

Commercial horse boarding operation means an

may not make exempt purchases.

agricultural enterprise of at least seven acres and

You must maintain a method of associating an invoice

boarding at least 10 horses, regardless of ownership, that

(or other source document) for an exempt sale with the

receives $10,000 or more in gross receipts annually from

exemption certificate you have on file from the purchaser.

fees generated either through the boarding of horses or

You must keep this certificate at least three years after the

through the production for sale of crops, livestock, and

due date of your sales tax return to which it relates, or the

livestock products, or through both such boarding and

date the return was filed, if later.

such production. Under no circumstances shall this

include an operation whose primary on-site function

Privacy notification

is horse racing.

New York State Law requires all government agencies

that maintain a system of records to provide notification

Misuse of this certificate

of the legal authority for any request, the principal

Misuse of this exemption certificate may subject you

purpose(s) for which the information is to be collected,

to serious civil and criminal sanctions in addition to the

and where it will be maintained. To view this information,

payment of any tax and interest due. These include:

visit our Web site, or, if you do not have Internet access,

call and request Publication 54, Privacy Notification. See

• a penalty equal to 100% of the tax due;

Need help? for the Web address and telephone number.

• a $50 penalty for each fraudulent exemption certificate

issued;

Need help?

• criminal felony prosecution, punishable by a substantial

fine and a possible jail sentence; and

Visit our Web site at

• revocation of your Certificate of Authority, if you

• get information and manage your taxes online

are required to be registered as a vendor. See

• check for new online services and features

TSB-M-09(17)S, Amendments that Encourage

Compliance with the Tax Law and Enhance the Tax

Telephone assistance

Department’s Enforcement Ability, for more information.

(518) 485-2889

Sales Tax Information Center:

To the seller

To order forms and publications:

(518) 457-5431

When making purchases that qualify for exemption from

Text Telephone (TTY) Hotline (for persons with

sales and use tax, the purchaser must provide you with

this exemption certificate with all entries completed to

hearing and speech disabilities using a TTY): (518) 485-5082

establish the right to the exemption.

Persons with disabilities: In compliance with the

Americans with Disabilities Act, we will ensure that our

lobbies, offices, meeting rooms, and other facilities are

accessible to persons with disabilities. If you have questions

about special accommodations for persons with disabilities, call the

information center.

Form St-125 - Farmer'S And Commercial Horse Boarding Operator'S Exemption Certificate Page 2

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