August 24, 2016
www.gfb.org
Vol. 34 No. 29
GFB PROVIDES GUIDANCE DOCUMENT FOR GATE COMPLIANCE Georgia Farm Bureau (GFB) has published a guidance document aimed at promoting proper use of the Georgia Agricultural Tax Exemption (GATE). The GATE program was established under Georgia House Bill 386 in 2012 and went into effect in 2013, extending and expanding previous farm input tax exemptions. GATE provides sales tax exemptions to farmers for purchases of items needed for production agriculture, like seed, livestock feed, fertilizer and other inputs. GFB strongly supported Look for the passage of HB 386 and now is urging GATE cardholders to use it properly. next issue of “It’s extremely important that our farmers who use the GATE program GFB News do so in a lawful way,” said GFB President Gerald Long. “It’s a valuable Alert on exemption when used properly, but if we abuse it we very well could lose September 7. it. We ask all our farmers around the state to please respect the program by following the rules.” The Georgia Department of Agriculture and Department of Revenue have placed emphasis on compliance with GATE rules. Both agencies have begun conducting audits of retailers and purchasers to ensure cardholders are using the program for its intended purpose. Misuse of the GATE card may result in taxes, penalties and interest. To qualify for the GATE card, a farmer must produce a minimum of $2,500 worth of agricultural products per year, provide a minimum of $2,500 worth of agricultural services, or produce a long-term agricultural product with the potential to produce $2,500. The cards must be renewed annually. The fee to register for a GATE card is $20 for an online application. Some of the items that can be purchased using the GATE card include machinery and equipment used for ag production, plants grown from cuttings, irrigation equipment, livestock sold for breeding purposes and energy, fuel and freight in certain situations. The GFB guidance provides an extensive list of items that can be purchased for farm use under the GATE program. Equally important, shoppers need to be aware of items that are not eligible for the exemption. These include, but are not limited to: clothes, boots and other apparel; food and drinks for human consumption; concrete pads, barns, greenhouses, strand metal buildings and other buildings that are considered real property. To view the GFB guidance document visit http://tinyurl.com/GFBGATEguide. To ask questions about the GATE card contact the Georgia Department of Agriculture at 1855-327-6829. For questions about item exemptions, contact the Georgia Department of Revenue at 1-877-423-6711.