I have 70 acres of land that is classified as agricultural. I have a farmer harvesting hay on this land, do I have to pay sales tax on a tractor if I purchase one.

ANSWER

The BIDaWIZ Team's Answer:

The Michigan state sales tax rules allow for an exemption for the purchase of a tractor used for agriculture in a business. Specifically, section 4a(1)(e) of the General Sales Tax Act provide exemption for the sale of tangible personal property to the extent that the property is used or consumed in connection with the production of qualified agricultural or horticultural pursuits as a business enterprise.