Important information from the Vermont Department of Taxes for Vermonters in the Ag Industry:
Act 100 of 2016 changed the exemption around agricultural machinery and equipment. The phrase “directly and exclusively” was changed to “predominately,” defined as 75% or more of the time the equipment is in use.
The exemption available to agricultural and horticultural entities for machinery and equipment is a use-based exemption. That means that items available under the exemption are only available as exempt if the purchaser will use the equipment 75% or more of the time for exempt uses. This declaration is made at the time of purchase by filling out Form S-3A, Agricultural Fertilizers, Pesticides, Supplies Machinery & Equipment.
Also, please feel free to call our office in Williston (802) 878-1963 or Rutland (802) 775-7132 Vermont for more information.