Purpose of the Form
This form is used to claim a sales and use tax exemption when purchasing materials, machinery, and equipment that will be directly incorporated into the construction, repair, or renovation of specific qualifying on-farm facilities in Kentucky.
Who Can Use It?
You can use this form in two ways:
- The Farmer: If you are buying the materials directly from the retailer/vendor yourself.
- The Farmer AND a Contractor: If a contractor is buying the materials to fulfill a construction contract on your farm. (Both parties must sign).
How to Complete Kentucky Form 51A159
1. Vendor Information
- Name of Vendor and Address: Write the name and physical address of the store or supplier where the purchase is being made.
2. Identify the Facility Type Check the appropriate line for the type of facility the materials are for. Qualifying facilities include:
- On-farm grain/soybean facility
- On-farm livestock or poultry raising facility
- On-farm buffalo raising facility
- On-farm ratite (ostriches, emus, etc.) raising facility
- On-farm aquaculture facility
- On-farm llama or alpaca raising facility
- On-site cervid (deer, elk, etc.) facility
3. Project Details
- Project Category: Check whether the project is New Construction, a Repair, or a Renovation.
- Description of Property to be Purchased: Clearly list what you are buying (e.g., ventilation fans, lumber for a barn, feeding system, brooding equipment).
4. Project Period (FOR CONTRACTORS ONLY)
- If a contractor is making the purchases on behalf of the farmer, they must enter the Start Date and End Date of the project. Purchases made by a contractor are only tax-exempt if they fall within these exact dates.
5. Signatures and Identification
- Farmer’s Section:
- Print your name, the physical location of the farm, and your mailing address.
- Provide your Driver’s License Number, State, or KY Agriculture Exemption Number.
- Provide your Sales/Use Tax Permit Number (if you have one).
- Sign and date the form.
- Contractor’s Section (If applicable):
- If a contractor is involved, they must print their name, address, title, signature, and date.
Important Rules & Limitations
- Blanket Certificate (Farmer only): If the farmer fills this out exclusively for themselves, it acts as a “blanket certificate.” It stays valid for that specific project category with that vendor until the farmer writes to the vendor to cancel it.
- Time Limitation (Contractors): If jointly executed with a contractor, it is only valid during the start and end dates listed. If the project takes longer or a new project starts, a brand new certificate must be filled out.
- Liability Warning: If you buy these items tax-free but use them for a non-exempt purpose (like building a personal garage instead of a poultry facility), you (the purchaser) are legally liable for the back taxes and potential penalties.
- Wrong Form for General Farm Supplies: Do not use this form to buy feed, tractors, gasoline, farm chemicals, or work stock. For those items, you must use Revenue Form 51A158 (Farm Exemption Certificate).
- Seller Instructions: Give the completed form to the vendor. The vendor must keep this certificate on file for at least four years to prove why they did not charge you sales tax.