Illinois Fertilizer & Chemical Association
Supply · Service · Stewardship

Records for Selling Ag Inputs as Sales Tax Exempt

There are many exemptions from sales tax for products purchased for use in agricultural production.  But although it is clear that farmers are exempt when purchasing seed, fertilizer and chemicals, it is always recommended by the IL Dept of Revenue that ag retailers maintain a document, signed by the farmer, that they are purchasing these items for use in their agricultural production operation.  
IFCA developed a form that you can use to maintain this record.  The IDOR recommends that you have the farmer sign the document at least once every 3 years and that the retailer keep it on file.  This document is posted on the IFCA website under "Regulations" and then "Taxes" or you can access it directly here.  
Not everything used in agriculture is automatically sales tax exempt.  The items must be essential to the actual propagation of a crop or livestock.  Under the "Taxes" section at we have all of the rules and regulations for sales tax exemptions posted; please feel free to call IFCA if you have questions about what is, and what is not, sales tax exempt.