Need a sales and use tax exemption for your Tennessee farm? You might need to write a letter. This letter proves you qualify for tax breaks on certain agricultural items. Farmers often use it when buying equipment, seed, or fertilizer.
Writing this letter can be tricky. Don’t worry, we’ve got you covered. We’ll share sample letters to make it easier.
This article provides templates and examples. Use them as a guide to craft your own letter. Get the tax exemption you deserve!
Sample Letter To Tennessee Agriculture Sales And Use Tax Exemption
[Your Name]
[Your Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]
[Date]
Tennessee Department of Revenue
Andrew Jackson State Office Building
500 Deaderick Street
Nashville, TN 37242
**Subject: Application for Tennessee Agriculture Sales and Use Tax Exemption**
Dear Sir/Madam,
I am writing to apply for a Tennessee Agriculture Sales and Use Tax Exemption. I am engaged in agricultural production in Tennessee.
My operation involves [briefly describe your agricultural activities, e.g., raising cattle, growing crops, dairy farming].
I understand that this exemption allows me to purchase certain items used directly and primarily in my agricultural operation without paying sales tax.
I have enclosed the following documents to support my application:
* [List of enclosed documents, e.g., Copy of Driver’s License, Business License, Schedule F from your tax return, etc.]
I affirm that the information provided in this application and the supporting documents is true and correct to the best of my knowledge. I understand that misuse of this exemption may result in penalties.
Thank you for considering my application. I look forward to your response.
Sincerely,
[Your Signature]
[Your Typed Name]
How to Write a Letter to Tennessee Agriculture Sales and Use Tax Exemption
Subject Line: Clarity is Key
The subject line is your initial communiqué. Be forthright. Instead of ambiguous terms, use specifics. For example:
- Good: Application for Agricultural Sales and Use Tax Exemption
- Better: Application for Ag Sales Tax Exemption – [Your Name/Farm Name]
Salutation: Address with Respect
Begin with appropriate deference. Avoid overly casual greetings.
- “To Whom It May Concern” is acceptable but impersonal.
- Strive to address a specific division if possible. “Tennessee Department of Revenue, Agricultural Exemption Division” followed by “Dear Sir/Madam” projects attentiveness.
Introduction: State Your Purpose Succinctly
Don’t obfuscate. Immediately articulate the letter’s intent. For instance:
- “I am writing to formally apply for an Agricultural Sales and Use Tax Exemption for my farming operation located at [Address].”
- Follow with a brief précis of your agricultural activities. “My farm specializes in [Type of Agriculture]…” This provides context.
Body Paragraphs: Substantiate Your Claim
This is where you buttress your exemption claim with granular detail. Provide:
- Farm Details: Legal name, physical address, mailing address (if different), and contact information.
- Agricultural Activities: Describe in detail what you produce. Quantify volumes where plausible. “We cultivate approximately 50 acres of corn, yielding an average of [Quantity] bushels annually.”
- Supporting Documentation: Explicitly mention any enclosed documents—Schedule F from your tax return, FSA farm number, or other pertinent evidence.
Justification: Bolster Your Eligibility
Elaborate on why your operations qualify for the exemption. Reference relevant Tennessee statutes if you possess familiarity with them. Otherwise:
- Emphasize that your activities are primarily for commercial agricultural production.
- Address any ancillary activities that might raise questions. If you occasionally sell directly to consumers, clarify that these sales are incidental to your main operation.
Closing: Cordial and Proactive
End on a positive note, indicating a willingness to cooperate further:
- “Thank you for considering my application. I am available to provide any additional information or documentation required.”
- Avoid demanding language. Opt for polite requests. “I would appreciate a prompt review of my application.”
Signature and Enclosures: Verify and Validate
The final touches solidify your application’s legitimacy:
- Sign the letter in ink. Typed signatures are insufficient.
- Below your signature, print your name and title (e.g., Owner, Farm Manager).
- List all enclosures clearly: “Enclosures: Schedule F, FSA Farm Number Documentation.”
Frequently Asked Questions: Tennessee Agriculture Sales and Use Tax Exemption
This section addresses common inquiries regarding the Tennessee Agriculture Sales and Use Tax Exemption. It provides information to assist those seeking to understand eligibility and application processes.
Who is eligible for the Tennessee Agriculture Sales and Use Tax Exemption?
Farmers, nurserymen, and timber harvesters who meet specific qualifications as defined by the Tennessee Department of Revenue are eligible.
What types of purchases are exempt under the Agriculture Sales and Use Tax Exemption?
Exempt purchases typically include items directly and primarily used in agricultural production, such as farm machinery, seed, fertilizer, and livestock.
How do I apply for the Tennessee Agriculture Sales and Use Tax Exemption?
You must complete and submit an application (Form RV-F1300401) to the Tennessee Department of Revenue, providing detailed information about your farming or timber harvesting operation.
What documentation is needed to support my application?
Supporting documentation may include proof of farming activity, such as a Schedule F from your federal income tax return, or other documentation demonstrating agricultural production.
How long is the Tennessee Agriculture Sales and Use Tax Exemption valid?
The exemption typically remains valid as long as the holder continues to meet the eligibility requirements. It is essential to maintain compliance with all applicable regulations.