The state Department of Agriculture has begun taking applications for the Georgia Agriculture Tax Exemption.

Agriculture is the only industry that has to pay retail prices on inputs and mostly receives wholesale prices on the crops it produces. In order for Georgia to remain competitive with other states, this tax exemption is important to Georgia farmers. Hopefully, this will encourage producers to expand their operations, growing Georgia’s largest industry.

The tax exemption is a new program created by Georgia House Bill 386, which offers qualified agriculture producers a sales tax exemption on agricultural equipment and production inputs. This program will replace the Agricultural Certificate of Exemption (ST-A1) form effective Jan. 1.

Applications are available online at agr.georgia.gov. There is $20 fee for online applicants and a $25 fee for all applications mailed in to the Agriculture Department.

“I want to thank the governor, lieutenant governor, the speaker and the General Assembly for passing this important piece of legislation,” State Agriculture Commissioner Gary W. Black said. “HB 386 updates and modernizes our tax codes allowing the agribusiness community to become more competitive with our surrounding states.”

The bill specifically broadens the sales tax exemptions for agricultural inputs by including equipment parts, energy used in production of an agricultural product and other inputs that were previously not exempt.

The bill also includes a phased-in, broad-based sales tax exemption on all energy used in manufacturing.

“I encourage farmers to apply for the GATE certificate immediately so they can receive the tax exemptions when they go into effect the first of the year,” Georgia Farm Bureau President Zippy Duvall said. “Georgia Farm Bureau worked hard to educate our state officials about the importance of these sales tax exemptions as the GATE program will help Georgia farmers remain competitive. ”

For more information, visit, www.agr.georgia.gov or 1-800-FARMTAX.

Michael Wheeler is county extension coordinator for the UGA Cooperative Extension in Hall County. You can contact him at 770-535-8293, www.hallcounty.org/extension. His column appears biweekly on Thursday’s Business page and at gainesvilletimes.com.