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Understanding the New York State ST-125 Exemption Certificate
At Adirondack Corp., we are committed to helping our customers make their purchases as efficient and cost-effective as possible. We understand that many of our clients, particularly those involved in agriculture and farming, may be eligible for sales tax exemptions. This is where the New York State ST-125 form comes in.
What is Form ST-125?
Form ST-125, officially known as the "Farmer's and Commercial Horse Boarding Operator's Exemption Certificate," is a New York State tax document that allows qualifying individuals and businesses to purchase certain tangible personal property and services without paying sales tax. This exemption is intended to provide financial relief to those in the agricultural and equestrian industries.
How Can This Benefit You?
If you are a farmer or a commercial horse boarding operator in New York State, you may be able to use Form ST-125 to make tax-exempt purchases from us. This means you could save on the sales tax for products such as:
Firewood Racks & Stands: If you use them for the production or sale of firewood, which is a farm product.
Firewood & Utility Sheds: If these structures are used predominantly on your farm or commercial horse boarding operation.
Animal Shelters/Running Sheds & Chicken Coops: Structures specifically designed to provide protection for your livestock from the elements.
Rough Cut Lumber: For building or repairing structures used for farming or horse boarding, such as barns, fencing, or shelters.
By using this form, you can reduce your operational costs and invest those savings back into your business.
Do You Qualify?
To qualify for the sales tax exemption using Form ST-125, you must be a farmer or a commercial horse boarding operator who meets the specific requirements set by the New York State Department of Taxation and Finance.
For Farmers: You must be engaged in farm production for sale. "Farm production" is broadly defined and includes activities such as:
Growing and harvesting crops, including firewood.
Raising livestock, poultry, and other farm products.
The items you purchase must be used predominantly (more than 50% of the time) in your farm production.
For Commercial Horse Boarding Operators: You must operate on at least seven acres, board at least 10 horses, and receive at least $10,000 in gross annual receipts from these activities.
How to Use the Form
If you believe you qualify, you must fill out the ST-125 form and present it to us at the time of purchase. You can also provide a "blanket certificate" to cover future purchases of the same general type of property.
We are required to keep a properly completed copy of your certificate on file. Please note that it is the responsibility of the purchaser to ensure they meet the qualifications and that the form is used for exempt purposes only. Misuse of the form can result in significant penalties.
For a complete list of what qualifies and for the most up-to-date information, we recommend consulting the official Form ST-125 and its instructions from the New York State Department of Taxation and Finance.