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Hi all,
I hope I am posting this in the best spot... I have a question about sales tax on equipment used to maintain our property.

My wife and I recently purchased a home (our new primary residence) on 13.5 acres in Minnesota. The land is zoned agricultural and had horses on the property 10-15 years ago, but none now. To my knowledge, there has never been crop or livestock production on the property either. Right now, about 1/3 is woods, 1/3 is natural (prairie), and 1/3 is manicured lawn (around the house). I recently purchased an ATV (with plow) for maintaining the property and am also looking at purchasing a utility tractor as well. I was told by the tractor dealership that for a property of >10 acres, that I likely will not need to pay sales tax on the tractor and shouldn't have paid it on the ATV either.

Can anyone help me with information on this? Is this true that I don't have to pay sales tax? Do I need to have some time of agricultural activity? Can I get the sales tax back that was already paid?

Thanks much!!
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I recently purchased an ATV (with plow) for maintaining the property and am also looking at purchasing a utility tractor as well. I was told by the tractor dealership that for a property of >10 acres, that I likely will not need to pay sales tax on the tractor and shouldn't have paid it on the ATV either.

I'll bet they have some fine crop land in Arizona to sell you too. I'm not saying they'll say anything to make a sale, I'm just saying that as long as they have an exemption certificate from the purchaser it's not their problem.

Thanks to Ms. Google I found this in about 10 seconds:

http://taxes.state.mn.us/sales/Documents/st3.pdf

It looks to me like the exemption applies only if the equipment will be used in agricultural production of something for sale. Also check out Fact Sheets 100 and 106.

You might ask the dealer about some other basis for exemption.

Phil
Rule Your Retirement Home Fool
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I'll bet they have some fine crop land in Arizona to sell you too.

C'mon Phil don't pick on us "Zonys" ... I live smack-dab in the Phoenix Metro area and we have citrus fields, flower groves, cotton fields, corn crop lands and even have a Christmas tree farm within a few miles from my house ... yes Christmas pine trees .... Honest!!! Just want to keep you Kansans updated my friend. ;)

Rich
Arizona
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I live smack-dab in the Phoenix Metro area and we have citrus fields, flower groves, cotton fields, corn crop lands and even have a Christmas tree farm within a few miles from my house ... yes Christmas pine trees .... Honest!!!

Oh, I believe you. I've heard that you can no longer talk about "dry heat" since all the irrigation has boosted the humidity level.

Phil
Rule Your Retirement Home Fool
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