FRANKFORT – The Kentucky Department of Revenue has reversed its stand on the taxation of header wagons by determining that the wagons are eligible for the farm machinery exemption.
Anyone who has previously paid sales and use tax on a header wagon during the past four years will be eligible for a full refund of sales tax paid.
“This is good news for farmers – especially Western Kentucky farmers,” said Senator Jerry P. Rhoads, D-Madisonville. “I am pleased that the Department of Revenue now recognizes that header wagons are eligible agricultural machinery.
“I appreciate my colleagues in the Senate and the House for working diligently with the Revenue Department in order to get their position changed,” added Senator Rhoads. “Farmers face enough hardship without having to pay an unnecessary tax. The header wagon is designed to carry farm equipment so our argument has always been that it should be exempt from the tax like other farm machinery. The Kentucky General Assembly was in close contact with the Revenue Department during the 2012 Legislative Session and continued to work with them after the session on this important issue.”
The problem arose because documents accompanying recent purchases listed the header wagon as a “trailer.” The department had previously determined that a “trailer” was not a farm wagon and was therefore subject to sales and use tax.
Refunds on this tax can be claimed up to four years back from when the tax was paid to the Department. For additional information about the refund process, contact the Kentucky Department of Revenue, Sales and Use Tax Division, at 502.564.4581.