My customer has provided Form R-1007, Farm Related Products Exemption Certificate and Form R-1091, Commercial Farmer Certification. However, the information does not match. What should I do?

The purchaser information on Form R-1007, Farm Related Products Sales Tax Exemption Certificate, should match the information on the R-1091, Commercial Farmer Certification. If it does not, then the exemption should be denied. Acceptance of Form R-1007, Farm Related Products Sales Tax Exemption Certificate, without a matching Form R-1091, Commercial Farmer Certification, could result in the vendor being liable for the sales tax, plus applicable interest and penalties.

Occasionally, farmers may have more than one “DBA” in their farm operations. For example, Smith Farms, LLC may have two farm operations under the same FEIN and may choose to call them different DBA’s such as Butterfly Farms and Top Garden Farms in order to allocate expenses between the two farms. Smith Farms, LLC may apply to LDR in writing to ask that an additional Commercial Farmer Certification be issued in each DBA name to allow each operation to purchase farm-related items exempt from state sales tax. In the example above, LDR would issue a Commercial Farmer Certification to Smith Farms, LLC, DBA Butterfly Farms, and another Commercial Farmer Certification to Smith Farms, LLC, DBA Top Garden Farms.