New card streamlines sales tax exemptions for Arkansas farmers

Arkansas farmers can now flash a wallet-sized card to claim sales tax exemptions on tractors, feed, and other agricultural supplies, state officials announced Tuesday, eliminating paperwork that has long slowed purchases at farm supply stores.

The Arkansas Department of Finance and Administration began accepting applications for the “Farmers Sales Tax Exemption Card” following the passage of legislation aimed at simplifying tax breaks for equipment ranging from irrigation systems to fertilizer.

The card costs $20 and remains valid for eight years, with renewals available for $10. Farmers can apply online at atap.arkansas.gov, and approved cards will arrive by mail bearing the farm’s name, address, issue date, and a unique identification number.

“Farmers shouldn’t have to jump through hoops just to do their jobs,” Gov. Sarah Huckabee Sanders said in a statement. “This card makes it easier to claim sales tax exemptions right at the point of purchase, cutting paperwork, and giving farmers more time where it matters most: in the field and with their families.”

The program stems from Act 621 of 2025, sponsored by Rep. DeAnn Vaught, R-District 87, and Sen. Tyler Dees, R-District 35.

Eligible tax-exempt items include animals, chemicals, machinery, seed, tractors, sprayers, irrigation equipment, mechanical pickers, and fertilizer.

DFA Secretary Jim Hudson said the durable card fits standard wallets and benefits both farmers and retailers who serve them.

“It is consistent with DFA’s goal of consistently finding new ways to improve the services we provide Arkansans,” Hudson said.

Find the full application at atap.arkansas.gov.