Becoming a Tax Exempt Farm in Ohio: A Guide

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How do I become a tax exempt farm in Ohio?
To obtain an Ohio farm tax exempt form, a farmer should visit the Department of Taxation’s website. He will need either a Sales and Use Tax Unit Exemption Certificate (form STEC U) or a Sales and Use Tax Blanket Exemption Certificate (form STEC B).
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You can qualify for a tax exemption if you run a farm in Ohio. You may invest more in your farm and save money on taxes as a result. However, to qualify as a tax-exempt farm in Ohio, you must fulfill certain requirements and adhere to particular guidelines. We’ll walk you through each stage of the procedure in this article.

1. Establish your eligibility

The following requirements must be satisfied in order for a farm to be tax free in Ohio:

– You must earn a minimum of $2,500 from farming operations each year in gross income.

– You are required to cultivate the land.

– You need to own at least 10 acres of land or generate $2,500 in average annual gross income per acre of land.

– You must actively participate in farming, which entails management and decision-making on a daily basis.

You can proceed to the following stage if you satisfy all of these requirements.

2. Submit an application for an agricultural use valuation Through a scheme called the Agricultural Use Valuation (AUV), qualified farms can have their property taxes calculated using the land’s agricultural worth rather than its market value. This may save you a lot of money on taxes. You must follow these procedures in order to submit an AUV application:

– To get an application, get in touch with the county auditor’s office.

– Complete the application and submit it along with all necessary supporting papers, including a farm plan, soil maps, and production records. – Send your application in by the due date, which is the first Monday in March.

In the event that your application is accepted, you will be notified of the updated valuation. Your AUV status must be renewed every three years.

3. File a Tax Exemption Request

You can submit a tax exemption application after obtaining AUV status. You must carry out the following actions to achieve this:

– To get an application, get in touch with the county auditor’s office.

– Complete the application and submit it along with all necessary supporting documents, such as proof of income and evidence of agricultural use. The application must be submitted by the due date, which is the first Monday in March.

A notice of exemption will be given to you if your application is accepted. Your tax-exempt status must be renewed yearly.

How to Obtain an Ohio Reseller Permit

In Ohio, you must a reseller permit if you sell goods that are subject to sales tax. As a result, you can buy goods without paying sales tax because you can collect it from customers instead. The actions below must be taken in order to obtain a reseller permit:

– File a business registration form with the Ohio Secretary of State.

– Register with the Ohio Department of Taxation in order to receive an Ohio sales tax account number. The Sales and Use Tax Blanket Exemption Certificate must be filled out completely and submitted to the Ohio Department of Taxation.

You can save money by purchasing goods for your farm without paying sales tax if you have a reseller authorization. Just remember to charge sales tax when you sell your goods to clients.

In conclusion, Ohio has particular requirements that must be met in order to qualify as a tax-exempt farm. You can reduce your property taxes and income taxes by seeking for tax exemption and attaining AUV status, respectively. Additionally, obtaining a reseller permit can enable you to purchase goods for your farm while paying less sales tax. Please feel free to ask your county auditor’s office or the Ohio Department of Taxation for clarification if you have any questions about any of these steps.

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