Agricultural and Timber Exemptions and Texas Taxes housing benefit form download

If you are a farmer, rancher or timber producer engaged in one of the activities listed below, you qualify for tax exemption on the purchase of certain items used to produce your agricultural and timber products for sale.

There are, however, three ways to purchase items without paying sales tax. Some items are exempt by law, some are exempt when used exclusively for ag/timber purposes and other items qualify for a standard sales tax exemption. Always exempt purchases – exemption certificate not required

• medications, tonics, restoratives or other therapeutic preparations (such as vaccines and drenches) purchased with a prescription from a veterinarian (you must either give the retailer a written prescription from a veterinarian or allow the retailer to receive the prescription directly from the veterinarian);

You must give the retailer a properly completed agricultural or timber exemption certificate showing a current agricultural and timber registration number (ag/timber number) when purchasing these items:

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• fertilizers, fungicides, insecticides, herbicides, defoliants and desiccants used exclusively to produce timber for sale or on a commercial farm or ranch to produce food or other agricultural products for sale;

• machinery and equipment (including repair or component parts) used exclusively on a commercial farm or ranch to produce food or other agricultural products for sale or to build or maintain roads and water supplies;

Some animals and their feed do not qualify for the ag/timber exemption, but do qualify for the standard sales and use tax exemption. You must give the retailer a properly completed form 01-339, texas sales and use tax exemption certificate (PDF) when purchasing them. The certificate must specifically explain the exempt purpose for which the animal or feed will be used. You do not need an ag/timber number to buy them.Housing benefit form download

Work animals do not include animals raised, trained or kept as pets or breeding stock or those kept for sport or for show. For example, tax is due on hunting dogs or other animals a game hunting operation purchases and on exotic animals a zoo or circus purchases.

Animal feed – feed for work animals qualifies for exemption. Feed for animals being held for sale in the regular course of business (including dogs, cats, rabbits and exotic animals) also qualifies for exemption.

To qualify for exemption, the sales and use tax exemption certificate must clearly state the feed is for work animals, animals to be sold in the regular course of business or for breeding stock for animals that will be sold.

Farm and timber machines, trailers and semitrailers used primarily for farming, ranching and timber operations (including machines and trailers used primarily in poultry operations and on feedlots) qualify for exemption from motor vehicle tax.Housing benefit form download agricultural exemption – farm machines and farm trailers

The term “farm trailer” does not include a motor vehicle designed for sleeping, dressing, lounging, restroom use or meal preparation, even if the vehicle is used to transport livestock or agricultural products.

Timber machine – a self-propelled motor vehicle specifically adapted to perform a specialized function for use primarily in timber operations, such as land preparation, cultivating, maintaining and harvesting commercial timber.

To claim exemption from motor vehicle sales and use tax on the purchase of a qualified farm or timber machine or trailer, you must provide the dealer a properly completed form 14-319, texas motor vehicle exemption certificate for agricultural and timber operations (PDF).

The exemption must also be claimed at the time of titling or registration with the local county tax assessor-collector by entering your current ag/timber number on form 130-U, application for texas title.Housing benefit form download

Farm plates – for information on registering (or renewing registration of) a motor vehicle with farm plates, contact your local county tax assessor-collector or the texas department of motor vehicles at txdmv.Gov. Motor vehicle rental tax exemption

When claiming exemption from motor vehicle gross rental receipts tax when you rent qualifying farm or timber machines trailers, you must enter your ag/timber number and expiration date on form 14-305, motor vehicle rental tax exemption certificate (PDF).

When you purchase an item that is not exempt from tax by law, you must give the seller an exemption certificate to purchase the item tax free. The type of exemption certificate depends on the type of item you are purchasing and how it will be used.

Retailers are not required to accept an exemption certificate. If they choose not to accept an exemption certificate from you on a qualifying item, you must pay the tax and then request a refund of the tax paid from the comptroller.Housing benefit form download

Any items you buy tax free must be used in an exempt manner. Otherwise, the exemption will be lost and you will have to pay tax, penalty and interest on those items. Ag/timber exemption certificates for sales tax

An agricultural or timber exemption certificate is required when you claim a sales tax exemption on the purchase of items directly used to produce agricultural and timber products being raised or harvested for sale.

Agricultural – for purchases of items (PDF) used exclusively on a commercial farm or ranch to produce food or other agricultural products for sale, you must give the retailer a form 01-924, texas agricultural sales and use tax exemption certificate (PDF).

Timber – for purchases of items (PDF) used exclusively to produce timber products for sale, you must give the retailer a form 01-925, texas timber operations sales and use tax exemption certificate (PDF).Housing benefit form download sales and use tax exemption certificates

Some animals and their feed do not qualify for the ag/timber exemption, but do qualify for the standard sales and use tax exemption. You must give the retailer a properly completed form 01-339, texas sales and use tax exemption certificate (PDF) when making these purchases. The certificate must specifically explain the exempt purpose for which the animal or feed will be used. You do not need an ag/timber number to buy these items.

Farm and timber machines, trailers and semitrailers used primarily for farming, ranching and timber operations, including machines and trailers used primarily in poultry operations and on feedlots, qualify for exemption from motor vehicle tax.

Motor vehicle tax exemption – to claim exemption from motor vehicle sales and use tax on the purchase of a qualified farm/timber machine, trailer or semitrailer, you must give the dealer a properly completed form 14-319, texas motor vehicle exemption certificate for agricultural or timber operations (PDF).Housing benefit form download

The exemption must also be claimed when you title or register the vehicle with your local county tax assessor-collector. Use the form 130-U, texas application for title, and enter your current ag/timber number on that form.

Motor vehicle rental tax exemption – to claim exemption from gross rental receipts on the rental of qualifying farm/timber machines and qualifying farm/timber trailers, enter your agricultural and timber registration number (ag/timber number) and expiration date on the form 14-305, motor vehicle rental tax exemption certificate (PDF) you give to the motor vehicle rental dealer. Additional resources