Last fall, the North Carolina Department of Revenue published information explaining how sales and use tax applies to sales made at specialty markets, flea markets, festivals, sporting events, and the like. That information has recently been updated to clarify the taxation of sales made by farmers and similar producers.
In North Carolina, a farmer who only sells products produced by him- or herself, the farmer, “is not required to obtain a Certificate of Registration.” Such a farmer must provide a written statement attesting to the fact that all items sold by the farmer were produced by the farmer. The farmer will then be issued an agricultural exemption number by the North Carolina Department of Revenue. Both the agricultural exemption number and the certified statement attesting to the origin of the goods sold must be provided to the operator of the specialty market or special event, and both “are required to be kept in conjunction with the daily registration list.”
However, should a farmer sell products not produced by him- or herself (products purchased for resale), the farmer “is required to obtain a Certificate of Registration.”
This information is particularly relevant for florists, nurserymen and greenhouse operators, and vendors classified as retail merchants. Additional information is available at the department’s Sales and Use Tax Technical Bulletin, Section 9.
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