Arkansas Launches Farmers Sales Tax Exemption Card for Easier Tax-Free Purchases

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Arkansas farmers will soon have an easier way to claim sales tax exemptions at the point of purchase.

The Arkansas Department of Finance and Administration announced Monday that a new Farmers Sales Tax Exemption Card will be available beginning in January. The card, created through Act 621 of 2025, is designed to streamline the process for farmers to obtain eligible sales tax exemptions when purchasing qualifying items.

According to DFA officials, the card will allow farmers to confirm their tax-exempt status directly at the point of sale, reducing paperwork and administrative delays.

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The exemption applies to a wide range of agricultural purchases, including animals, chemicals, feed, machinery and seed. Additional tax-exempt items include tractors, sprayers, irrigation equipment, mechanical pickers and fertilizer.

Farmers can apply for the card online at atap.arkansas.gov. Once approved, the DFA will mail the card to the applicant. The card will remain valid for eight years and carries an initial cost of $20, with a $10 renewal fee. Each card will include the farm’s name and address, the issue date and a unique card number.

The legislation establishing the card was sponsored by Rep. DeAnn Vaught, R–District 87, and Sen. Tyler Dees, R–District 35, and was signed into law by Gov. Sarah Huckabee Sanders.

“Farmers shouldn’t have to jump through hoops just to do their jobs,” 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.”

DFA Secretary Jim Hudson said the program aligns with the agency’s mission to improve services for Arkansans.

“DFA is proud to implement this valuable program,” Hudson said. “It reflects our goal of finding new ways to make day-to-day work easier for farmers and the retailers who serve them.”

The Farmers Sales Tax Exemption Card is designed to fit easily into a wallet and is made of durable material.

More information and the full application are available online at atap.arkansas.gov.