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New York Exemption for Farmers and Horse Boarders


 Does the boarding of tiny horses qualify for the New York exemption?

If you are a farmer or operate a commercial horse boarding business in New York, you may be eligible for an exemption from sales and use tax on the purchase of certain items and services. All such exemptions require proper documentation: Form ST-125, Farmer’s and Commercial Horse Boarding Operator’s Exemption Certificate.

The exemption is “limited to purchases of property and services used predominantly (more than 50% of the time) either in farm production, in a commercial horse boarding operation, or in both.”

Farm production includes the following:

  • Agriculture, floriculture, horticulture, aquaculture, and silviculture;
  • Dairy, fruit or vegetable, graping, poultry, stock, truck and tree farming;
  • Operating orchards;
  • Raising fur-bearing animals;
  • Raising, growing, and harvesting crops, livestock, and livestock products;
  • Raising, growing, and harvesting woodland products, including logs, time, lumber pulpwood, posts and firewood;
  • Ranching.

A commercial horse boarding operation is defined as an operation that:

  • Boards at least 10 horses (regardless of ownership);
  • Operates on at least seven acres;
  • Receives $10,000 or more in gross receipts annually from fees generated from boarding horses, producing for sale crops, livestock and livestock products, or from these two activities, combined.

Think something described above sounds like you? Check out the New York Department of Taxation and Finances tax bulletin on the topic, TB-ST-253.

Learn how automated sales tax software helps business manage sales tax exemptions.

photo credit: j_m_wetherington via photopin cc


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.