This page provides information on how the application of the Sales Tax exemption for the purchase of Farm Equipment and Machinery operates. 

To qualify for the State of California Farm Equipment partial sales tax exemption, the machinery must be used 50% or more of the time directly for the production of food sold for resale.

Although the university grows a substantial number of crops for research, education and to feed our on-site food animals, the equipment is not typically used to produce food for general sale and thus not eligible for the partial sales tax exemption.

If your department will be purchasing farm equipment that will be used for food for resale purposes, reach out directly to Tax Reporting and Compliance for assistance BEFORE beginning the purchasing process.