Machinery and Equipment
Qualifying new and used farm machinery is exempt from sales tax. To be exempt, the machinery must do all of the following:
- Meet the definition of farm machinery outlined in Minnesota Statutes 297A.61, subd. 12
- Be used directly in agricultural production
- Be used 50% or more of its operating time in agriculture production
You must give your supplier a completed Form ST3, Certificate of Exemption. Specify the Farm Machinery Exemption.
What does farm machinery include?
Farm machinery includes, but is not limited to:
- Machinery for the preparation, seeding, or cultivation of soil for growing agricultural crops
- Barn cleaners, milking systems, grain dryers, feeding systems including stationary feed bunks, and similar installations, whether or not the equipment is installed by the seller and becomes part of the real property
- Irrigation equipment sold for exclusively agricultural use, including pumps, pipe fittings, valves, sprinklers, and other equipment necessary to the operation of an irrigation system when sold as part of an irrigation system, whether or not the equipment is installed by the seller and becomes part of the real property
For a list of farm machinery that qualifies for this exemption, see Exempt Farm Machinery.