Arkansas launches sales tax exemption card for farmers

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Farmers in Baxter County and across the Twin Lakes area can now take advantage of a new state program designed to simplify how agricultural sales tax exemptions are claimed.

The Arkansas Department of Finance and Administration (DFA) announced that a new “Farmers Sales Tax Exemption Card” is now available, making it easier for farmers to claim certain sales tax exemptions at the point of purchase.

The card, created under Act 621 of 2025, applies to items including animals, chemicals, feed, machinery, seed, and other farm-related equipment. To qualify, an individual or farm must be engaged in selling an agricultural product as a business, whether producing cattle, rice, beans, fruits, vegetables or other farm goods.

Approved applicants will receive a durable wallet-sized card by mail. The card remains active for eight years, with an initial fee of $20 and a $10 renewal cost. Each card lists the farm’s name and address, the issue date, and a unique identification number.

KTLO News spoke with Scott Hardin, spokesperson for Department of Finance and Administration, who explains the reason for the card.

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State officials estimate up to 40,000 farmers statewide may qualify for the card. DFA officials say a significant number of calls from farmers interested in applying have come from the 870 area code, which includes Baxter County and much of north central Arkansas.

The legislation was sponsored by Rep. DeAnn Vaught, R-District 87, and Sen. Tyler Dees, R-District 35. Examples of tax-exempt items include tractors, sprayers, irrigation equipment, mechanical pickers, and fertilizer.

For more information or to apply, visit atap.arkansas.gov.

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