The North Carolina Department of Revenue has released its official notice and application forms relating to recent revisions to North Carolina’s agriculture sales tax exemption that took effect July 1.
The changes are due to House Bill 1050 that was passed by the General Assembly and signed by Gov. Pat McCrory on May 29.
Every farmer who has a current agriculture exemption certificate and has $10,000 or more in annual gross farm income in the past tax year or a three-year average of $10,000 or more in annual gross farm income must apply for a new qualifying farmer exemption certificate.
Farmers who are ineligible for the new qualifying farmer exemption certificate may obtain a conditional farmer exemption certificate by completing and submitting Form E-595CF. The conditional farmer exemption certificate is valid for three years, provided the certificate holder annually submits federal and state tax documents that demonstrate the holder is engaged in farming activities.
A qualifying farmer includes a dairy operator, a poultry farmer, an egg producer, a livestock farmer, a farmer of crops, and a farmer of an aquatic species.
The North Carolina Department of Revenue has produced FAQ’s for Form E-595QF that can be downloaded here.
The official notice can be downloaded here.