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highyields
Senior Contributor

tax laws in surrounding states around nebraska

what are the sales tax laws across the country concerning agriculture, Do you pay on machinary, and parts and services,

I know other states have way differnet laws concerning real estate taxation.   just curious since they want to overall the tax system in nebraska, EXCEPT property tax, which is the one tax that everyone bitches about.   

 

 

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Thanks for the info,  I find it interesting.     

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3 Replies

Re: tax laws in surrounding states around nebraska

Ks has property and sales tax exemption on machinery and farm repairs. This year, the governor has proposed a declining tax rate structure for all businesses, eventually eliminating income taxes on businesses. I am unsure if that applies to agriculture.
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Kay/NC
Honored Advisor

Re: tax laws in surrounding states around nebraska

There is a database somewhere that would answer this for you...try a Google search for state sales tax on agriculutral supplies.  

 

Much of what we use in animal ag is exempt in NC and Va, but there are minor differences between the two.  For example, when we moved to NC 19 years ago, we learned that VA exempted hay twine, but NC did not.

 

You have to file a form E-595, I think it is called.  This is a streamlined form for use in all states, I think.  I keep a copy with our info filled in pinned to the office bulletin board, and provide it to each vendor.  

 

Property tax exempt on farm machinery in VA, but they tax it in NC.  You can really run afoul of some of these breaks if you start callng yourself " agritourism" , and get screwed up on zoning and use- based deferred valuation reserved for ag and forestry, too.  

 

Very complex issue. 

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buckfarmer
Senior Contributor

Re: tax laws in surrounding states around nebraska

Overheard a guy ask his buddy if he was tax exempt at TSC. First guy was buying a gun safe and didn't want to pay sales tax. When I was shopping for Gator type machine for my mom to buy for dad for Christmas dealers were all over the place on wether they expected or encoraged the buyer to pay sales tax. my understanding is only items that are used directly in production of agricultural products are exempt. I think even things like fencing and barn paint are considered inprovements. We must not inforce it very closely. Only heard of two different cases being even investigated.
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