Sales Tax Exemption for Fencing Materials & Services Available to Kansas Farmers & Ranchers
Tax Exempt Sales for Fencing Repairs Help Farmers through Natural Disasters
Severe weather conditions are always a concern for Kansas farmers and ranchers, and the past few years have been no different. With the lack of rain and high temperatures, Kansas has encountered its fair share of natural disasters. These conditions have many farmers and ranchers searching for assistance on how to combat the associated difficulties and financial challenges.
Farmers and ranchers have access to a sales tax exemption to lessen the financial burden of these disasters.
Sales Tax Exemptions Starting January 1, 2021
As of January 1, 2021, costs associated with reconstructing, repairing or replacing any fence that was damaged or destroyed by a wildfire, flood, tornado or other natural disaster and for the purpose of enclosing land devoted to agricultural use are exempt from sales tax. For the fence to qualify, it must be in an area declared as a disaster by the federal, state or local government. This exemption remains in effect if the costs occurred within two years of the date of the disaster declaration.
Refunds for Sales Tax Paid between January 1, 2021, and June 30, 2022
For damages between January 1, 2021, and June 30, 2022, where qualifying expenses have already been paid, the owner is eligible for a refund of any sales tax paid. Refunds can be requested by submitting form ST-3, Kansas Application for Sales Tax Refund of Fencing Materials and/or Services to the director of taxation. It is expected to take at least 45 days for refund processing. Refunds are only eligible for sales tax paid to a Kansas retailer.
Unpaid Expenses Between January 1, 2022, and June 20, 2022
For damages between January 1, 2021, and June 30, 2022, where qualifying expenses have not been paid, the sales tax exemption can be claimed by submitting form ST-28F, Agricultural Exemption Certificate, to the retailer where purchases will be made.
Purchases on or after July 1, 2022
Any qualifying expenses on or after July 1, 2022, are exempt from sales tax. To receive this exemption, the owner must provide form ST-28F to any contractor or repairperson to purchase the necessary materials and labor. If the operator is performing the services themselves, they will need to provide form ST-28F to the retailer where the purchases will be made.
This sales tax exemption is a great way for Kansas farmers and ranchers to recoup some of the expenses they have incurred because of changing weather conditions. If your farm or ranch has experienced a natural disaster declaration and you have questions or need assistance, reach out to an Adams Brown advisor.