Massachusetts commercial farm sales tax exemption

If you are a Massachusetts commercial farmer you are eligible for a sales tax exemption on certain items!

Do you Qualify?

If you own a commercial farm, when purchasing specific items you automatically qualify for an exemption from the Massachusetts Sales Tax of 6.25%.

How to Qualify:

If you have a commercial farm, tax exempt status can be claimed by filling out a ST-12, downloadable here.

What is Covered Under this Sales Tax Exemption?

Under M.G.L. ch 64H § 6 (r),(s) the following are exempt from the state sales tax, through a ST-12, if consumed and used directly and exclusively in agricultural production:

  • Sales of Tools, Fuel, and other Materials where the normal useful life is less than one year or if the cost is an ordinary and business expense for federal income tax purposes
  • Sales of Farm Machinery such as Tractors, Plows, Backhoes, Balers, Harrowers, Harvesters, Manure Spreaders, Seeders and Similar Machinery
  • The Rental or Lease of Farm Machinery. (DOR Directive 99-8)
  • Sales of Livestock and Poultry

What Farm Items are not Taxable at all?

Under M.G.L. ch 64H § 6 (p),(q), the following farm purchases are exempt from the state sales tax (you don’t need an ST-12 for these):

  • Sales of Feed for Livestock
  • Sales of Fertilizer such as ground limestone, hydrated lime, seed inoculants, and plant hormones
  • Sales of Plants, including parts of plants such as seed potatoes, onion sets, asparagus roots, berry plants or bushes, and fruit trees.
  • Sales of Returnable and Nonreturnable Containers with or without contents

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