Sales Tax and Bees

Yesterday we talked to the Utah Tax Commission and asked about sales tax for honeybees and equipment. It turns out that we need to be charging in-state sales tax for our products, especially now that we are selling beekeeping equipment.

However, they told us about an exemption for those purchasing beekeeping equipment for production agriculture. Like, if you want to sell some honey or get paid for pollination, you could qualify for this exemption.

To receive the tax exemption, fill out form TC-721 at http://tax.utah.gov/. Check the box to state that you are an ag producer. We will need a copy of this form, and then you are exempt from paying the sales tax on our products. No need for a sales tax ID number on this form, according to the Tax Commission representative (and the form).

Thanks for reading! And I hope this saves some of you some money.