Agricultural Sales Tax Exemption Certificates

by Head of Research at TTR, Ken Webster

According to a Georgia state audit, the $300 million GATE program that provides agricultural sales tax exemption certificates to farmers is open to misuse and abuse. The audit calls the $2,500 threshold for eligibility in the program “low,” citing a risk “cardholders near the threshold can fall out of eligibility after receiving the card.”

“The GATE application does not collect the necessary information, such as income for each industry an applicant is engaged in, to properly assess eligibility,” the audit said.

Also, there has been an update to the 2019 GATE announcement. The application and renewal system for 2020 GATE cards is available online and fees for all cards must be paid online by credit card or ACH only. The Georgia Department of Agriculture will no longer accept mailed in checks as payment for Gate card fees.

Louisiana updates

A new law about registering as a commercial farmer and qualifying for an agricultural sales tax exemption certificates went into effect July 1, 2020.

The state sales tax exemption on farm agricultural inputs includes fuel, feed, seed, fertilizer, and livestock pharmaceuticals.

While this is a renewal of the tax-exempt form, the Louisiana state legislature changed the law for agricultural sales tax exemption and to qualify farmers must be certified as a commercial farm.

Our Sales Tax Research Team keeps you completely up to date on current tax laws and sales tax rules across the country.


Ken Webster is an Executive Leader and Head of Research at TTR, a subscription-based website that provides sales, use, and transaction tax answers and tax rates to thousands of companies worldwide.