ST-125 is the exemption certificate that the New York State Department of Taxation and Finance provides so that farmers and commercial horse boarding operators can buy qualifying property and services without paying New York State and local sales and use tax. You complete it as the purchaser and hand it to the seller, who keeps it as proof of the exempt sale. On FillingPDF you can fill out the form online and download or print the completed PDF; the official PDF is published by the Tax Department, and the certificate goes to the seller, not to FillingPDF.
Last updated
What is ST-125?
Form ST-125, Farmer’s and Commercial Horse Boarding Operator's Exemption Certificate, is the New York State and Local Sales and Use Tax form on which a purchaser certifies that property or services will be used or consumed in farm production, in a commercial horse boarding operation, or in both.
The purchaser gives the completed certificate to the seller. A registered vendor may accept it instead of collecting tax. The certificate lists six exempt uses, marked A to F: tangible personal property used predominantly (more than 50%) in farm production or horse boarding; installing, repairing or servicing exempt property; repairing or servicing buildings and other real property used that way; motor vehicles used predominantly that way; gas, electricity, refrigeration or steam; and drugs or medicine used on livestock or poultry used in farm production.
The form can be a single-purchase certificate or a blanket certificate. A blanket certificate stays in effect until the purchaser gives the seller written notice of revocation, or until the Tax Department notifies the seller that the purchaser may not make exempt purchases.
ST-125 is not for motor fuel. For gasoline or diesel motor fuel, the form points to Form FT-1004, Form FT-420 and Form FT-500. By signing, the purchaser accepts that willfully issuing the certificate to evade tax may be a felony or other crime under New York State law.
Who needs to file ST-125?
Purchasers who buy property or services that will be used or consumed in farm production, in a commercial horse boarding operation, or in both, and who want to buy them exempt from New York State and local sales and use tax, complete ST-125 and give it to the seller.
- Farmers: farm production means producing tangible personal property for sale by farming, including agriculture, horticulture, aquaculture, livestock, dairy, poultry and woodland products, as defined in the form's instructions.
- Commercial horse boarding operators: the instructions define the operation as an agricultural enterprise of at least seven acres boarding at least 10 horses, with the gross receipts the instructions require. These operators must also enter their Certificate of Authority number on the form.
- Representatives: the purchaser's representative may sign, giving title and relationship.
Do not use ST-125 to buy motor fuel (gasoline) or diesel motor fuel exempt from tax. An operation whose primary on-site function is horse racing is never a commercial horse boarding operation.
Sellers are the other audience: the instructions explain when a registered vendor may accept the certificate in place of collecting tax.
When to file ST-125
Give ST-125 to the seller when you make a purchase that qualifies for the exemption. The seller must have a properly completed certificate in hand within 90 days of the transaction to be protected. Without one by then, the seller shares with the purchaser the burden of proving the sale was exempt.
Choose the certificate type for the timing you need. A single-purchase certificate covers one purchase. A blanket certificate can be treated as part of any order the seller receives while it remains in effect, until you give written notice of revocation or the Tax Department notifies the seller that you may not make exempt purchases.
Box F applies only to drugs or medicine bought on or after June 1, 2018. For earlier purchases, the instructions direct the purchaser to Form AU-11, Application for Credit or Refund of Sales and Use Tax.
Documents you need
- Certificate of Authority number, entered on the form by commercial horse boarding operators.
How to fill out ST-125
Enter the seller's name and address
Under Name of seller, enter the seller's name, street address, city, town or village, state and ZIP code.
Enter the purchaser's name and address
Under Name of purchaser, enter your name, street address, city, town or village, state and ZIP code.
Add your Certificate of Authority number
If you are a commercial horse boarding operator, enter your Certificate of Authority number on the line provided.
Choose the certificate type
Mark an X in either Single-purchase certificate or Blanket certificate. A blanket certificate covers orders the seller receives while it remains in effect.
Mark the exempt uses A to E
Mark an X in each applicable box: A (tangible personal property), B (services on exempt property), C (services on buildings and real property), D (motor vehicle) or E (gas, electricity, refrigeration or steam). Use applies to farm production, a commercial horse boarding operation, or both.
Mark Box F for drugs or medicine
Mark F only for drugs or medicine used on livestock or poultry used in farm production, bought on or after June 1, 2018.
Sign and date the certification
The purchaser or the purchaser's representative signs, giving title and relationship, and enters the date in the Date box.
Print the signer's name and title
Type or print the name, title and relationship that appear in the signature box.
Review and download the completed PDF
Check that every entry is complete, since the certificate is not valid otherwise. Download or print the completed PDF from FillingPDF and give it to the seller as described under How to submit.
How to submit ST-125
You do not file ST-125 with a tax return or mail it to the Tax Department. You deliver the completed, signed certificate to the seller (the vendor) when you buy. The form states that it is delivered to the vendor as agent for the Tax Department.
- To the seller: hand over or send the completed certificate with all entries made. The certificate is not valid unless the purchaser has completed every entry.
- Seller's records: the seller must keep a way to link each exempt-sale invoice or other source document to the certificate, and keep the certificate at least three years after the due date of the related sales tax return, or the date the return was filed, if later.
For questions, visit www.tax.ny.gov or call the Sales Tax Information Center at 518-485-2889. To order forms and publications, call 518-457-5431. Text telephone (TTY) or TDD users dial 7-1-1 for the New York Relay Service. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Leaving entries blank: the form is not valid unless the purchaser has completed all entries, and an improperly completed certificate can leave the seller liable for the tax.
- Using ST-125 to buy gasoline or diesel motor fuel exempt from tax; the form says it cannot be used for motor fuel and points to FT-1004, FT-420 and FT-500.
- Marking Box F for drugs or medicine bought before June 1, 2018; Box F is valid only for purchases on or after that date.
- Omitting the Certificate of Authority number when you are a commercial horse boarding operator.
- Marking neither Single-purchase certificate nor Blanket certificate, so the seller cannot tell whether it covers one order or later ones.
- Claiming the exemption for an operation whose primary on-site function is horse racing, which the definition excludes.
- Signing without title and relationship when a representative signs for the purchaser.
- Giving the seller the certificate more than 90 days after the sale, which removes the seller's protection.
Frequently asked questions
What is Form ST-125 used for?
ST-125 is a New York exemption certificate. A farmer or commercial horse boarding operator gives it to a seller to certify that property or services will be used in farm production or horse boarding, so the seller may accept it instead of collecting sales and use tax.
Do I file the ST-125 form with the Tax Department?
No. You deliver the completed certificate to the seller, who keeps it. The form describes it as delivered to the vendor as agent for the Tax Department, and sellers must keep it at least three years after the due date of the related sales tax return.
Can I use ST-125 to buy exempt gasoline or diesel fuel?
No. The form says it cannot be used to buy motor fuel or diesel motor fuel exempt from tax. It points to Form FT-1004 for certain diesel purchases, and Forms FT-420 and FT-500 for refunds on certain purchases.
What is the difference between a single-purchase and a blanket certificate?
A single-purchase certificate covers one purchase. A blanket certificate can be treated as part of any order the seller receives while it is in effect, until you give written notice of revocation or the Tax Department says you may not make exempt purchases.
What counts as a commercial horse boarding operation?
The instructions define it as an agricultural enterprise of at least seven acres boarding at least 10 horses, with required gross receipts from boarding or from selling crops and livestock. An operation whose primary on-site function is horse racing never qualifies.
When is Box F valid on ST-125?
Box F, for drugs or medicine used on livestock or poultry in farm production, is valid only for purchases on or after June 1, 2018. For earlier purchases, the purchaser must use Form AU-11 to request a refund or credit of tax paid.
Can I fill out ST-125 online?
Yes. You can fill out the ST-125 PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not send the certificate to anyone; you give it to the seller yourself.
What happens if I misuse an exemption certificate?
The form warns of serious civil and criminal sanctions in addition to tax and interest, including penalties, felony prosecution and revocation of a Certificate of Authority for those required to be registered vendors.
Ready to fill out ST-125?
Fill out ST-125 now