Replacement Parts and Labor

Repair and replacement parts and labor to repair qualified farm machinery, equipment, or appliances are exempt from sales tax when billed to and paid by a person holding an agricultural exemption certificate. 

Batteries and replacement filters (e.g., oil filters, fuel filters, and air filters) that are purchased to replace like articles on farm equipment are considered replacement parts and, when sold to a qualified farmer, timber harvester, or nursery operator for use on qualifying farm equipment, can be purchased exempt from sales tax. 

Maintenance Tools and Equipment 

Items such as wrenches, sockets, jacks, air compressors, grease guns, welders, and similar items used to repair farm machinery and equipment are exempt from sales and use tax if they are primarily used in agriculture operations. Such items that are used primarily for personal activities or any other use outside of agricultural operations are not exempt.

Adaptive Equipment 

Replacement Parts 

Generally, the addition of adaptive equipment, such as radios or additional lights, that is installed on qualified farm machinery or equipment where a similar part did not previously exist is taxable. However, if the adaptive equipment replaces existing equipment on qualified farm machinery or equipment, it is exempt from tax when purchased by a qualified person.

Replacement Wheels and Tires 

Trucks and automobiles are specifically listed in the sales and use tax law as items that do not qualify for the farm equipment and machinery exemption. Because trucks and automobiles are subject to sales tax, any tires, replacement parts, or labor performed on the truck are also subject to sales tax. 

Replacement wheels and tires for tractors, combines, livestock trailers, and other qualifying farm equipment and machinery are considered replacement parts and, when sold to a qualified farmer, timber harvester, or nursery operator for use on qualifying farm equipment and machinery, can be purchased exempt from sales tax. 

If a tire is purchased as a qualified repair or replacement part for qualifying farm equipment, the tire disposal fee that is imposed on such purchase, regardless of whether such fee is separately itemized on the invoice, is also exempt from sales tax when purchased by a holder of an agricultural certificate of exemption.

A link to the entire manual can be found on Tennessee Farmers 

Cooperative's website at: https://www.ourcoop.com/salestaxexempt.