Tennessee Ag Sales Tax

Pursuant to Public Chapter 1104 (2022), beginning January 1, 2023, qualified farmers and nursery operators may purchase building material, fencing material, warranties and most other items of tangible personal property used primarily (more than 50%) in agricultural operations exempt from sales and use tax. Automobiles, trucks, household appliances and gasoline or diesel fuel used in vehicles operated upon public highways are not included in this exemption. This notice does not address the exemption in its entirely, please consult the Department’s tax manual for more details. For farmers to qualify for this exemption, they are required to attain qualification from the Tennessee Department of Revenue. This page provides important links for the Tennessee Agriculture Sales and Use Exemptions.