When sold for agricultural purposes , seeds (including plants and seedlings), fertilizer, lime, fungicide, herbicide and insecticide are exempt. These items are exempt when used for raising vegetables at home but are not exempt when used to maintain a flower or other decorative garden or lawn. The tax does not apply to sales of containers used by a farmer to transport farm products to the market or to sales of baler twine or wire. Fuel for use in farm equipment or farm tractors is exempt, along with replacement parts and components, including hydraulic oil.
It is not necessary to register with the Comptroller's Office to claim agricultural exemptions. However, a vendor may ask for a signed statement to indicate that the customer is a farmer or that the purchase will be used only for agricultural purposes. Even if a certification is provided , a vendor must collect the tax, if he or she knows or should know that the purchase does not qualify for exemption.