SB 148 — AN ACT relating to the registration of farmers for sales and use tax exemption purposes.

UNOFFICIAL COPY 20 RS BRSB 469148/EN AN ACT relating to the registration of farmers for sales and use tax exemption purposes.

(1) On and after January 1, 2021,2022, every person claiming an exemption provided under KRS 139.480(4) to (9), KRS 139.480(11), KRS 139.480(13) to (15), and KRS 139.480(23) to (30) shall firstinclude applyon forthe appropriate exemption certificate an agriculture exemption number fromissued by the department.

(3) (a) PersonsOn and after January 1, 2022, persons that receive an agriculture exemption number and choose to claim the exemptions outlined in subsection (1) of this section shall, at least one (1) time, provide the seller or retailer from whom they purchase exempt tangible personal property with one (1) of the following:

or Page 1 of 4 SB014820.100 - 469 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 148/EN 2.

A fully completed Streamlined Sales Tax Certificate of Exemption Page 1 of 3 BR046900.100 - 469 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 469 which shall include the agriculture exemption number.

(4)(c) (a)Persons Thethat department,meet bythe administrativerequirements regulation,of shallsubsection develop(2) anof applicationthis formsection forbut thehave not yet received an agriculture exemption number andfrom proceduresthe bydepartment whichprior theto applicationJanuary form1, 2022, may alsoissue bea submittedfully eithercompleted electronicallyexemption orcertificate bywithout paperthe filing.agriculture exemption number prior to July 1, 2022.

(4) (a) On or before April 1, 2021, the department, by administrative regulation, shall develop an application form for the agriculture exemption number and procedures by which the application form may also be submitted either electronically or by paper filing no later than January 1, 2022.

One (1) of the following forms of documentation:

Any other type of information that may establish to the Page 2 of 4 SB014820.100 - 469 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 148/EN satisfaction of the Commissioner that the applicant qualifies for the agriculture exemption number.

(5) (a) The agriculture exemption number shall expire three (3) years from the date that the number is issued by the department or when the person ceases to engage in the agriculture activity for which the agriculture exemption Page 2 of 3 BR046900.100 - 469 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 469 number was granted, whichever comes first.

(b) The person may apply for a renewal of the agriculture exemption number prior to the expiration date if the person continues to meet the requirements of subsection (2) of this section and provides documentation required by subsection (4)(b)4.(4)(b)5.

(6) (a) On or before July 1, 2021,2022, the department shall develop and provide an online searchable database on the department's Web site that the seller or retailer may use to confirm the agriculture exemption number if the purchaser cannot produce documentation of the agriculture exemption number at the time of sale.

(c) The seller or retailer shall be relieved of the liability for collecting and remitting the sales and use tax if the seller or retailer meets the Page 3 of 4 SB014820.100 - 469 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 148/EN requirements of KRS 139.260 and 139.270.

SectionPage 2.4 of 4 SB014820.100 - 469 - XXXX Engrossed

This Act takes effect January 1, 2021.

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