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Texas Taxes
Agriculture
  1. News and Information
    1. Recent messages sent to subscribers of @ Your Service email update service
    2. Frequently Asked Questions NEW
  2. Forms
    1. AP-228 Application for Texas Agricultural and Timber Exemption Registration Number (PDF) NEW
    2. 01-924 Texas Agricultural Sales and Use Tax Exemption Certificate (PDF) NEW
    3. 01-925 Texas Timber Operations Sales and Use Tax Exemption Certificate (PDF) NEW
    4. 14-202 Texas Claim for Refund of Motor Vehicle Tax (PDF)
    5. 14-305 Motor Vehicle Verification Certificate for Rental Tax (PDF)
    6. AP-197 Texas Diesel Fuel End User or Agricultural Exemption Signed Statement Number Registration (PDF)
    7. 06-106 Texas Claim for Refund of Gasoline or Diesel Fuel Taxes (PDF)
    8. 06-710 Texas Agricultural Signed Statement for Purchasing Tax-Free Dyed Diesel Fuel (PDF)
  3. Publications
    1. Retailers’ Guide to the Sales Tax Exemption Registration Requirement for Commercial Agricultural and Timber Operations (PDF) NEW
    2. Texas Sales Tax on the Use of Horses (PDF) NEW
    3. New Exemption Requirement for Commercial Agriculture and Timber Operations
    4. 98-923 Get Ready, Texas! (PDF)
    5. 94-101 Texas Agricultural Exemptions (PDF)
    6. 98-805 Motorcycles – Sales Tax on Street-Legal and Off-Road Vehicles (PDF)
    7. 96-254 Motor Vehicle Tax Guidebook (PDF)
  4. Rules

    Note: The current rules are under revision to make changes related to HB 268, 82nd Legislative Session.


    Sales and Use Tax
    1. 3.296 Agriculture
    2. 3.287 Exemption Certificates
    3. 3.367 Timber Items
    Motor Vehicle Tax
    1. 3.72 Farm Machines, Timber Machines and Trailers
    Motor Fuels Tax
    1. 3.432 Refunds on Gasoline and Diesel Fuel Tax
    2. 3.438 Signed Statements for Purchasing Dyed Diesel Fuel Tax Free
    3. 3.440 On-Highway Travel of Farm Machinery
  5. Resources
    1. State Tax Automated Research (STAR) System


Agriculture and Timber Industries
Frequently Asked Questions


Agricultural Fuels Tax

  1. What kind of license or permit do I need to purchase dyed diesel for agricultural use?
  2. Can an agricultural end user purchase gasoline tax free for use in agricultural equipment?

Agricultural Sales Tax

  1. How do I claim the agricultural sales tax exemptions?
  2. Who is eligible for the new Ag/Timber Number?
  3. Who is NOT eligible for an Ag/Timber Number?
  4. Can shoppers from foreign countries and other states claim the agricultural exemption when buying items in Texas?
  5. Do Ag/Timber Numbers expire?
  6. I see that most agricultural items only qualify for exemption if used exclusively on a farm or ranch. What qualifies as a farm or ranch for Texas sales and use tax purpose?
  7. Can furniture and housewares that will be used in a farm or ranch office or housing be purchased tax free?
  8. Is an All Terrain Vehicle (ATV) taxable if used occasionally for farm use?
  9. Are materials used in the construction of a barn exempt?
  10. What kinds of building structures are considered equipment necessary for agricultural production, thereby qualifying for tax exemption?
  11. What kinds of items can a commercial nursery buy under an agricultural sales tax exemption?
  12. Is a commercial nursery able to buy and install a sprinkler system or irrigation system tax free?
  13. Can a nursery buy plastic sheeting, mesh netting and other supplies to protect the plants from frost or sun damage tax free?
  14. Can a commercial nursery build a temporary shelter tax free?
  15. Is pet food taxable?
  16. Can I buy food for my herding dogs tax free?
  17. Is food purchased for breeding animals and their offspring held for sale taxable?
  18. Can I buy dog food tax free for dogs I board?
  19. Is deer corn taxable? What about wild bird seed?
  20. Can I buy deer feeders and deer blinds for my hunting lease tax free?
  21. What kinds of exemptions are available for construction and/or repair of pasture roads?
  22. I am hired by farmers and ranchers to do road repairs and grade roads using a bulldozer or maintainer. Am I providing a taxable service?
  23. Does a farmer or rancher need to present an exemption certificate each time a purchase is made for agricultural purposes?
  24. What is the taxability of the sale of perennial plants?
  25. Are wild game and bird feeders exempt?
  26. Is work clothing used on a farm or ranch taxable?
  27. Can an aircraft be exempt from sales tax for agricultural purposes?
  28. Is the sale of apple or other fruit-bearing or nut-bearing trees taxable?
  29. Can fencing materials be purchased tax free?
  30. Is sales tax due for labor (included in a lump-sum contract) for the construction of fences, gates, cattle guards, roads; or for labor for the repair of fences, gates, cattle guards, roads, etc. on a farm or ranch?
  31. Can I buy traps, guns and ammunition used for predator control on my ranch tax free?
  32. I'm a student and participate in FFA and 4-H. Can I purchase water bottles, feed bowls and cage materials for my chickens and rabbits that will be shown and sold at the fair?
  33. I own a farm, but rent my land to a farmer (tenant) under a crop share arrangement. As the landowner, I pay a fixed percentage of certain expenses the farmer incurs in the production of crops raised on my land. In turn, I receive that same fixed percentage of the crop proceeds. The farmer has full authority to decide what purchases are necessary to incur maximum crop development. The farmer has an Ag/Timber registration number and makes tax-free purchases of qualifying agricultural exempt items. The retailer making the sales of exempt agricultural items to the farmer has agreed to bill the farmer and me (the landowner) separately based upon our agreed percentages. The farmer receives a bill for his portion of the cost of the exempt items and in turn pays his percentage of the shared expenses to the vendor. The supplier of these qualified expenses also bills me directly for my share of the exempt purchases. I do not have an Ag/Timber registration number. Can I provide my tenant farmer's Ag/Timber number to the supplier to pay my share of the expenses of exempt items that were purchased by the farmer?

Horses

  1. As a horse owner, do I qualify for an Ag/Timber Number to purchase eligible items tax free?
  2. I breed and sell horses. Do I qualify for an Ag/Timber Number to purchase eligible items tax free?
  3. My family does team penning and I rope, but I don't routinely sell my horses. Do I qualify for an Ag/Timber Number to purchase eligible items tax free?
  4. I'm a farrier and start colts on the side. Do I qualify for an Ag/Timber Number to purchase eligible items tax free?
  5. We breed and stand a stud but my wife also shows Western and English. Do I qualify for an Ag/Timber Number to purchase eligible items tax free?
  6. As a horse breeder with an Ag/Timber Number, what can I buy tax free?
  7. I breed mares at my racing stable hoping to produce foals with high speed indexes. I sell the rest. Do I qualify for an Ag/Timber Number to purchase eligible items tax free?
  8. I'm a trainer but I also buy, train and resell performance prospects. Do I qualify for an Ag/Timber Number to purchase eligible items tax free?
  9. I have a working ranch and sell the cattle I raise. I don't raise horses for sale but I do use them to herd my cattle and ride fences. Can I use my Ag/Timber Number to buy items used on my work horses tax free?
  10. I board horses for others and use my own horses to give riding lessons and hold trail rides. Do I qualify for an Ag/Timber Number to purchase eligible items tax free?

Landowners/Lessors

  1. I am a landowner who leases my land to a tenant who uses the land to produce agricultural products for sale. I am responsible for maintaining the fences. Am I eligible for an ag/timber number to purchase items such as the fencing for the land tax-free?
  2. I lease my land to a person who raises cattle for sale. The cattle graze on this land, and my lease agreement states that I am responsible for providing grass for the cattle. Do I qualify for an ag/timber number?
  3. I lease land to a tenant who raises agricultural products for sale on the land. Under the terms of our lease contract, he is responsible for maintaining the fences that surround the leased areas, but I reimburse him for the costs. Can he use his ag/timber number to buy the fencing materials tax free? Does the fact that I reimburse expenses disqualify my tenant from the exemption?
  4. I lease land to a tenant who has an ag/timber number. Can I use my tenant's ag/timber number to buy materials necessary to repair the fencing that surrounds the land he uses to produce agricultural products for sale?
  5. I raise cattle for sale. Because of the drought, I was forced to sell my entire herd earlier this year. As a result, I am not actively engaged in the production of agricultural products for sale right now, but will begin again as soon as the drought is over. Do I qualify for an ag/timber number?
  6. I rent my land under a shared expense/profit arrangement. As the landowner, I pay one-third of the expenses incurred by the farmer I rent the land to. I also share in one-third of the profit made from sales of the agricultural products produced on the land. The farmer pays two-thirds of the expenses and keeps two-thirds of the profits made from sales of the agricultural products produced on the land. Do I need an Ag/Timber Number?
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