As the crop season gets underway, now is a good time to remind everyone of that the Nebraska, effective October 1, 2014, exempts sales and use tax when purchasing agricultural repair and/or replacement parts.
Per the Nebraska Department of Revenue’s Sales Tax Exemption Chart, (and based upon this Department of Revenue regulation) any repair or replacement parts for agricultural machinery and equipment used in commercial agriculture is exempt from sales and use tax. Form 13 is required when using the exemption; specifically, you must fill out Section B of Form 13 and indicate that the exemption is for commercial agriculture.
The exemption for repair and replacement parts is separate from the Nebraska Personal Property Tax Exemption for beginning farmers. The Personal Property Tax Exemption requires an application to the Nebraska Department of Agriculture, as well as supporting documentation. The exemption for repair and replacement parts does not require such steps.
If you have any questions, please feel free to contact us! We’re always here to help.