OKLAHOMA CITY—American Farmers & Ranchers Cooperative, an organization which serves Oklahoma farmers and ranchers, is pleased that the state Legislature has approved an agriculture sales tax exemption measure, the organization said in a news release.
Senate Bill 422, authored by Sen. Frank Simpson (R-Springer) and Rep. Dell Kerbs (R-Shawnee), passed the Senate 45-0 on May 19. The House unanimously approved the bill five days later.
SB 422 provides clarification and flexibility to farmers and ranchers applying for or renewing an agricultural sales tax exemption permit, according to the news release. Applicants can qualify for the exemption by providing satisfactory documentation from one of four categories— a federal tax form, such as a Schedule F, Form 4835, Form 1065, or an equivalent IRS form; a one-page business description form provided by the Oklahoma Tax Commission; a USDA FSA number or program form; or other documents that the Oklahoma Tax Commission accepts to verify involvement in production agriculture.
“Oklahoma’s farmers and ranchers are an integral part of our state’s economy; it is essential we foster a regulatory environment that keeps farming operations successful and encourages the next generation of producers,” said AFR President Scott Blubaugh. “Clarifying Oklahoma’s agricultural sales tax exemption process will provide certainty to our producers, while also providing eligibility guidelines for regulators that ensure the ag sales tax exemption is reserved for active farmers and ranchers.”