This bill amends the law regarding gross receipts tax exemption certificates by introducing a new "farmer sales tax identification card." The card is designed to assist eligible farmers in obtaining exemptions from sales tax for tangible personal property and taxable services related to their farming activities. The bill outlines the process for farmers to apply for the card, including an application fee of $20 for new cards and $10 for renewals. The card will expire eight years from the date of issuance and can be renewed without additional documentation if the farmer's information remains unchanged.

Additionally, the bill relieves sellers from sales tax remittance liability if they accept the farmer sales tax identification card in good faith. It specifies that sellers are not required to renew or update exemption certificates when there is a recurring business relationship with the purchaser. The bill also establishes penalties for purchasers who improperly claim exemptions using the card. The act is set to take effect on January 1, 2026.