What to expect when applying for or renewing an ag sales tax exemption permit

Over the past several months, Oklahoma Farm Bureau has heard concern from members facing new challenges obtaining an agricultural sales tax exemption permit- a crucial business tool exempting nearly all inputs used in production agriculture from sales tax.

OKFB, along with a broad coalition of statewide agriculture groups, worked to pass legislation this year to provide additional options to prove eligibility for the permit. The newly passed Senate Bill 422 will go into effect July 1, 2021, and allows Oklahoma producers to provide a document from one of four categories as proof of eligibility for the exemption.

OKFB members attempting to renew or obtain a permit this year should apply as usual by listing personal property used in the farm or ranch with their county assessor.

If listing property with the county assessor is insufficient, agriculture producers should apply for an exemption permit through the Oklahoma Tax Commission.

Producers should have the option to provide one of the following forms to prove eligibility:

• a federal tax form that shows income from agriculture, such as a Schedule F, Form 1065 or Form 4835
• a USDA Farm Service Agency Form 156EZ which can be obtained from your county FSA office
• a one-page business description form provided by the Oklahoma Tax Commission
• or a separate document approved by OTC that proves active agriculture production

Any Farm Bureau member who encounters difficulties obtaining a permit should contact the OKFB Public Policy staff at (405) 523-2437 or using this form. OKFB will continue working to ensure eligible Oklahoma farmers and ranchers retain access to the agricultural sales tax exemption.

2501 N Stiles
Oklahoma City, OK 73105
(405) 523-2300