Form ST-7: NJ Farmer's Exemption Certificate

This certificate may be used only by businesses that are treated as “farming enterprises” under N.J.S.A. 54:32B-8.16 of the Sales and Use Tax Act.

A “farming enterprise” means an enterprise using land to raise agriculture or horticulture commodities for sale. Farming enterprises include, but are not limited to, enterprises producing dairy products, poultry, feed crops, fruit, vegetables, livestock, fur animals, timber, ornamental plants, bees and apiary products.

For sales and use tax purposes, a “farming enterprise” does not include an enterprise that is primarily engaged in boarding or training horses or in selling agricultural or horticultural products produced by others.

The farmer's exemption applies only to sales of tangible personal property or services which will be used directly and primarily in agricultural or horticultural production.

It does not apply to sales of: motor vehicles, natural gas, electricity, or property to be used to construct a building or structure (with the exception of silos, greenhouses, grain bins, or manure handling facilities).

When purchasing a truck or truck tractor with a gross vehicle weight rating of more than 18,000 pounds which is registered with the New Jersey Division of Motor Vehicles as a farm vehicle or a commercial over-the-road truck with a gross vehicle weight rating over 26,000 pounds which is registered in New Jersey, the purchaser must use Exempt Use Certificate (ST-4) rather than a Farmer's Exemption Certificate. See N.J.S.A. 54:32B-8.43.

Enter the Purchaser's New Jersey Tax Registration Number. It is Required.

If the purchaser is not required to be registered with the New Jersey Division of Taxation and does not have a New Jersey Tax Registration Number, the purchaser is required to place either their Federal Identification Number or, if a sole proprietor, the last three digits of their Social Security Number in the box at the top, right corner of the form marked “Eligible Nonregistered Purchaser.”

Any New Jersey farmer who is not a sole proprietor, or who sells any goods or services subject to sales tax, or who is an employer, must be registered with the New Jersey Division of Taxation and therefore cannot be an “eligible nonregistered purchaser”.

Enter the Date and the Name of Seller, then the seller's Address, City, State and ZIP.

The seller's name and address are not required and are not considered when determining if an exemption certificate is fully completed.

Check applicable box: Single Purchase Certificate or Blanket Certificate.

A seller may permit a purchaser to file a blanket Farmer's Exemption Certificate to cover future purchases of similar items of tangible personal property.

However, each subsequent sales slip or purchase invoice based on such blanket certificate must be clearly marked with the purchaser's name, address, and identification number.

The purchaser certifies that it is exempt from payment of the Sales and Use Tax on purchases to be made from the seller because the property or service is to be used for an exempt purpose described in N.J.S.A. 54:32B-8.16 of the Sales and Use Tax Act as follows:

“Sales of tangible personal property and production and conservation services to a farmer for use and consumption directly and primarily in the production, handling, and preservation for sale of agricultural or horticultural commodities at the farming enterprise of that farmer.” Enter the Description of agricultural or horticultural commodities produced at the purchaser's farmer enterprise.

Enter the Description of tangible personal property or service purchased.

Enter the Name of individual, partnership, association, or corporation and the Business address, both marked Required.

The following information must be obtained from a purchaser in order for the exemption certificate to be fully completed:

Purchaser's name and address; Type of business; Reason(s) for exemption; Purchaser's New Jersey tax identification number or, for a purchaser that is not registered in New Jersey, the Federal employer identification number or out-of-State registration number. Individual purchasers must include their driver's license number; If a paper exemption certificate is used (including fax), the signature of the purchaser.

Registered sellers who accept fully completed exemption certificates within 90 days subsequent to the date of sale are relieved of liability for the collection and payment of sales tax on the transactions covered by the exemption certificate.

The seller may, therefore, accept this certificate as a basis for exempting sales to the signatory purchaser and is relieved of liability even if it is determined that the purchaser improperly claimed the exemption.

If it is determined that the purchaser improperly claimed an exemption, the purchaser will be held liable for the nonpayment of the tax.

DO NOT MAIL THIS FORM TO THE DIVISION OF TAXATION. This form is to be completed by purchaser and given to and retained by seller.