Mark Required Fields In Legal Kentucky Farm Operations Forms For Free

KRS 139.481 requires that farmers who are eligible for agriculture exemptions from sales and use tax apply for and use their Agriculture Exemption (AE) Number to claim the applicable tax exemptions. This pre-qualification process will greatly reduce exemption claims by those not qualified for the exemptions.

Under the law, protected farms and farm operations include farmland, buildings, machinery, and activities that involve commercial agriculture production, including farm products and nursery stock such as forages, seeds, hemp, trees, vegetables, fruits, livestock, dairy, poultry, apiaries, and other products that ...

Key factors that should be considered carefully during the planning stage of the farming operation are: site selection, water supply and quality, crop and variety selection, and, market development. If the wrong decision is made with regard to anyone of these, the operation is doomed for failure.

Any tract of land, including all income-producing improvements, of at least ten contiguous acres in area used for the production of livestock, livestock products, poultry, poultry products and/or the growing of tobacco and/or other crops including timber.

The Application for the Agriculture Exemption Number, Form 51A800, is available at .revenue.ky.gov under Sales Tax forms. Completed applications should be submitted by email to DOR.Webresponsesalestax@ky.gov or mailed to DOR's Division of Sales and Use Tax, Station 66, P.O. Box 181, Frankfort, KY 40602-0181.

Agricultural Unit To qualify for agricultural assessment: Land generally must be a minimum of 7 acres and farmed by a single operation. Land must be used for crop production, commercial boarding of horses or livestock production. Farm operation must gross an average of $10,000 or more in sales per year.