Kentucky law allows  for the purchase of inputs that are used for agricultural production as tax exempt.  This is a tremendous savings to the agricultural community, but changes are taking place that producers need to be aware of.  

A new Kentucky law was passed that now requires farmers to apply for an Agricultural Exemption Number to be used when purchasing qualified items to be tax exempt.  In the past, farmers used their drivers license number when filling out a form.  Now the new number officially identifies their tax exempt status without using their drivers license number.  Farmers have until June of 2022 to get their number.  After that date, any purchases without the new number will be subject to sales tax.  

The Bracken County Extension Service has promoted the new changes in the ag newsletter, and on our social media sites with links to the on-line application.  Articles have been written for the paper to increase awareness and guide producers to the web page to apply.  Most recently, it was presented to the Bracken County Cattlemen's Association annual membership meeting with an explanation of the new law, and how to apply.  Each member received a hard copy of the form, along with instructions on how to apply on-line.  Members were encouraged to do this right away to avoid missing the deadline and be subject to full taxation on farm inputs.  By sharing this with our farm community, producers will save thousands of dollars in taxes while protecting private identification by not using their drivers license number.