Sep 22, 2025 · Illinois’ agricultural production sales tax exemption helps farmers reduce costs on essential items used directly in producing food, fiber, and fuel. Since the 1980s, this exemption …

Should a purchaser-lessor subsequently lease the machinery or equipment primarily to lessees who do not use it in a manner that would qualify for the exemption, the purchaser-lessor will …

Sep 22, 2025 · “There’s a misconception that everything purchased for use on a farm is exempt from sales tax, but that’s not the case,” said Kevin Semlow, Illinois Farm Bureau executive …

Sales tax exemptions— Certain transactions in Illinois are exempt from tax. See the Illinois Administrative Code, Section 130.120 for a comprehensive list. This webpage includes …

Farmer’s are not exempt from sales tax but some equipment they buy may be exempt. To explain this we must first know the history of this subject. In the early 1980’s, Illinois passed the 86 …

Jan 8, 2025 · Under the Illinois Retailers’ Occupation Tax Act (35 ILCS 120/2-5), items used or consumed in agricultural production, such as seeds, fertilizers, and farm machinery, may …

Taxpayer’s purchase of a tractor did not qualify for the Illinois sales and use tax ex-emption for farm machinery and equipment because only 20% of the tractor’s use was included in exempt …

Example: A truck with a FMV of $20,000 is traded for a new truck with a total cost of $45,000. The $20,000 trade-in value is reported on Form 4797 not subject to 15.3% SE tax.

Apr 19, 2021 · As with most states, Illinois imposes a sales tax on the sale of tangible personal property, like machinery and equipment.

Aug 8, 2024 · Do farmers pay sales tax in agriculture & agribusiness in your area? See the differences in sales tax on agricultural products & farm equipment by state.