What the New York Form ST-125 (2018) Is For
New York Form ST-125 (2018) is a New York State exemption certificate used to claim a sales tax exemption on qualifying farm purchases. It supports Farmers Exemption claims involving agricultural products, farm equipment, production equipment, and certain farm operations. The form also applies to commercial horse boarding operations that meet the requirements of the New York State Department of Taxation and Finance.
Commercial Horse Boarding operators use Form ST-125 to document eligibility for sales and use tax relief on approved purchases. This includes tangible personal property used directly in horse boarding operation activities tied to farm production. Proper use reduces sales and use taxes owed under applicable New York sales tax rules.
When You’d Use New York Form ST-125 (2018)
Form ST-125 applies when qualifying farm equipment, agricultural equipment, or farm machinery is purchased without sales tax in New York State. It applies when purchases support farming income, agricultural use, or Commercial Horse Boarding activities in New York State. Vendors rely on the exemption certificate to justify not collecting sales tax at purchase.
The form is also used for fuel, agricultural vehicle supplies, and certain farm buildings tied to agricultural assessment eligibility. Commercial horse boarding operators must purchase items that directly relate to boarding operations and farm production activities. Using the form correctly avoids later sales and use tax assessments or penalties.
Key Rules or Details for 2018
For tax year 2018, Form ST-125 must be fully completed, signed, and presented at the time of purchase. All entries must accurately describe farm operations, horse boarding operation details, and intended agricultural use. Incomplete forms may invalidate the sales tax exemption and may be subject to later review.
Only qualifying farm operations and Commercial Horse Boarding qualify under the NYS Farmers' Sales Tax Exemption rules. Purchases for personal use, property tax exemption purposes, or unrelated services are not eligible. Supporting records should match your tax return and farming income documentation.
Step-by-Step (High Level)
- Step 1: Eligibility under the NYS Farmers Exemption or Commercial Horse Boarding Operations must be confirmed, including Certificate of Authority requirements.
- Step 2: Required buyer details, exemption purpose, and agricultural product information should be compiled using Farm Services Agency records and boarding contracts.
- Step 3: The NY DTF ST-125, also known as the ST-125 form, must be completed so all entries exactly match purchase invoices.
- Step 4: The form requires either an electronic signature or an ink signature, followed by secure saving of a clear copy using a PDF editor.
- Step 5: The ST-125 Farmer's and Commercial Horse Boarding Operator's Exemption Certificate must be provided to the seller before property delivery occurs.
- Step 6: Copies should be stored in Google Drive, records retained for Wyoming County reviews, and fuel tax exemption resources accessed as needed.
Common Mistakes and How to Avoid Them
Filing delays occur when preventable documentation and timing errors appear on submitted exemption certificates. Correcting active mistakes before submission improves compliance accuracy and approval outcomes. Clear prevention steps reduce rejections and eliminate follow-up requests from reviewing agencies.
- Missing signature: Sign and date Form ST-125 before submission.
- Incomplete required fields: Complete all purchaser, exemption, and use sections with accurate information.
- Late certificate presentation: Provide Form ST-125 at or before delivery or the time of sale.
- Ineligible purchases listed: List only qualifying farm production items and services on the certificate.
- Missing supporting records: Retain invoices and signed exemption certificates for audit verification.
What Happens After You File
After submission, sellers retain the ST-125 form to justify exempt sales during audits.
The New York State Department of Taxation and Finance may review the use of exemptions.
Proper documentation reduces the risk of reassessed sales and use taxes.
The sales tax exemption does not remove income tax or other filing obligations.
Records should align with agricultural assessment filings, such as Form RP-305-e or Form RP-305-r. County agencies, including Wyoming County Soil and Water, may also request supporting documentation.
FAQs
What is the ST-125 form used for?
The ST-125 form allows taxpayers to claim sales tax exemption on agricultural products supporting farm production and approved horse boarding operations.
Who may issue a valid Form ST-125?
Farmers or a horse boarding operator holding a Certificate of Authority may issue the ST-125 form in New York State. Vendors rely on the certificate to document exempt transactions during sales and use tax reviews statewide annually by auditors.
Does Form ST-125 apply to horse boarding activities?
Yes, the exemption applies when a horse boarding operation directly supports farm production within approved Commercial Horse Boarding Operations.
How should Form ST-125 be completed and stored?
The NY DTF ST-125 may include an electronic signature, which is then saved using a PDF editor or stored in Google Drive.
Are county agencies involved after filing?
Wyoming County and the Wyoming County Soil and Water Conservation District may review records related to the use of agricultural vehicles or property tax exemptions.
