FAQs for AGRICULTURE EXEMPTION NUMBER PROGRAM

(Updated with Senate Bill 121 provisions, effective March 30, 2022)

Why is the Agriculture Exemption Number needed?

• KRS 139.481 requires that farmers who are eligible for agriculture exemptions from sales and

use tax apply for and use their Agriculture Exemption (AE) Number to claim the applicable tax

exemptions. This pre-qualification process will greatly reduce exemption claims by those not

qualified for the exemptions.

What is the application process?

• Complete the online Application for Agriculture Exemption Number, Form 51A800.

• Submit applications via email to DOR.webresponsesalestax@ky.gov or mail to:

Kentucky Department of Revenue

Station 66

P.O. Box 181

• Please print as legibly as possible and ensure you have fully completed the application before

submitting. The Department of Revenue (DOR) will make every effort to process the

applicable exemption certificates for qualifying purchases while awaiting their AE Number.

• Please allow several weeks for processing due to the volume of applications being received.

What do I need to include for verification of farming activity?

You must include at least ONE of the following items:

• Federal schedule F, Profit or Loss from Farming. (This is the preferred documentation and

ensures the quickest processing time.);

• Federal Form 4835, Farm Rental Income and Expenses;

• Other documentation to verify sales of agricultural products, such as receipts, invoices, etc.; or

• Occupation of raising and feeding the kind of livestock that is sold for the purpose of food for

human consumption. (Raising horses and beekeeping do not qualify.)

• Raising and feeding poultry.

• Producing milk for sale.

• Raising ratite birds, llamas, alpacas, buffalos, cervids or aquatic organisms.

• Agriculture activity MUST be for business purposes and not for personal use or personal

How do I use the assigned AE Number to make exempt purchases?

• Submit the Streamlined Sales and Use Tax Agreement - Certificate of Exemption, Form 51A260

• Kentucky Farm Exemption Certificates (Forms 51A158 and 51A159) are also available for use

• Eligible farmers may provide the AE Number without completing any exemption certificate

paperwork. However, sellers must still maintain documentation that ties the AE Number

provided to the specific customer and items purchased.

• Sellers may continue to request and maintain the Streamlined Sales and Use Tax Agreement -

Certificate of Exemption, Form 51A260 or the Kentucky Farm Exemption Certificates (Forms

51A158 and 51A159) as long as they include their customer AE Number on the respective

• The Department of Revenue will provide further details on the renewal process at a later date.

• A farmer with an AE Number must contact the Department of Revenue within 60 days after

Do out-of-state residents need a Kentucky AE Number to make exempt purchases in Kentucky?

• Yes, all persons claiming a farm exemption in Kentucky must have a valid Kentucky AE Number.

• If the Kentucky seller ships the products to the out-of-state resident’s address or farm location,

need of a Kentucky AE Number. The Kentucky seller should consult the destination state

• Farms that are incorporated and have multiple members may choose to apply for separate AE

Numbers depending on the arrangement of purchasing responsibilities. However, each

member should generally use the same AE Number for purchases by the same farm entity.

Employees of the farm should use the assigned AE Number when making qualified purchases

for the farm.

• You may call the Department of Revenue’s taxpayer assistance line for Sales Tax at

(502) 564-5170 and select option 1.