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In order for an organization to be exempt from Pennsylvania sales tax, they must apply to the Pennsylvania Department of Revenue for a "75" number using REV-72, Sales Tax Exemption Application... The vendor is not required to accept the Exemption Form.
In order to qualify, the farmland must yield a yearly gross income of at least $2,000.00. If it does, then it is considered to be real estate devoted to the business of agriculture.
Separation is a division, by conveyance or other action of the owner, of land into two or more tracts of land that continue to be in Agricultural Use, Agricultural Reserve, or Forest Reserve. The tracts must usually be at least 10 acres in size and continue to meet the qualifications.
Registering your business can be accomplished online. A sole proprietorship or partnership will not need to be registered however, any structures more involved than these (LLC, LLP, S Corp, or C Corp) will need to register with the Commonwealth of Pennsylvania.
In order to qualify for tax exempt purchases you must complete a PA Exemption Certificate REV-1220 (both for farmers and resellers).
8 Steps to Launching a Farm Business Step 1: Understand the Hydroponic & Local Food Market. ... Step 2: Research and Write a Business Plan. ... Step 3: Get Farm Financing. ... Step 4: Find a Farm Site. ... Step 5: Make Your Farm Purchase. ... Step 6: Container Farmer Training. ... Step 7: Launch Your Farm. ... Step 8: Grow Your Business.