Are farmers exempt from paying sales or use tax on vehicles that are licensed to operate on the highways?
Generally, NO. Farmers are only exempt on equipment that is directly used in farming, such as tractors, planters or combines that plow the fields, plant the crops or harvest the crops. Motor vehicles (automobiles, trucks, etc.) registered for use on the highways and used to transport seed, fertilizers, chemicals or finished products are taxable. APV’s would only qualify for exemption if they are being used primarily (more than 50 percent of the time) directly in farming (similar to the way a tractor is used). There is an exception to the general rule and that is a specifically designed vehicle that contains a tank, operated with a power take-off unit (PTO) that is used to spray liquid fertilizers, pesticides, herbicides, etc., on farm lands and crops. This vehicle is generally owned by someone who is hired by a farmer to provide a farming service and must operate on the highways since it must travel from farm to farm. If the tank/sprayer is not operated by a power take-off unit, the ve
