The application takes about 10 minutes to complete. If you don’t already have an eSystems/Webfile account with the state of Texas, you will first register to create a secure online profile. If your business is registered with the Texas Secretary of State (SOS), your SOS file number (find your file number using our Taxable Entity Search) Social Security number (if you do not qualify for a Social Security number, you must apply by mail and include your national identification number and country of origin on the application)
How do I apply for an Ag Exemption, or an Ag/Timber Number? What You Need Before You Applyīasic information about your business (such as its name, description and address) You can use the number to claim an exemption on items that will be used exclusively to maintain or prepare the land for commercial agricultural production. Yes, since your ordinary course of business is the production of agricultural products for sale, you are eligible for an ag/timber number. 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. Because of the drought, I was forced to sell my entire herd earlier this year. Because your contract requires you to provide grass for the cattle, you can obtain an ag/timber number and use it to purchase tax-free those items used exclusively to produce the grass. The cattle graze on this land, and my lease agreement states that I am responsible for providing grass for the cattle.
I lease my land to a person who raises cattle for sale.
#Horses for texas ag exemption free
The horses themselves and horse feed (including grain, hay and feed supplements) can be purchased tax free without an ag/timber number or an exemption certificate. To qualify, persons must produce horses for sale in the regular course of business. Do I qualify for an ag/timber number to purchase eligible items tax free? My family does team penning and I rope, but I don't routinely sell my horses. Equipment used exclusively on the farm or ranch to produce horses for sale can be purchased tax free. Persons who breed and sell horses in the regular course of business (including standing studs or using live cover, shipped semen or artificial insemination) qualify for an ag/timber number. Kennels or other animal boarding businesses. Hunting and fishing operations, including aerial hunting Horse racing, boarding, training or trail rides įlorists or similar retailers who maintain plants before sale Teaching an agricultural vocational course. Growing plants for sale in a commercial nursery Ī veterinary business that makes farm or ranch calls
Timber production (including contract logging) Ĭrop dusting (as defined by 14 CFR Section 137.3) Your business type must be listed below to qualify for tax exemption on certain items or for an ag/timber number.įarming or ranching for the purpose of raising agricultural products for sale If you do not have a valid ag/timber number, you must pay tax to retailers on your purchases.
#Horses for texas ag exemption registration
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.Īll purchasers, including non-Texas residents, must have a valid agricultural and timber registration number (ag/timber number) issued by the Comptroller to claim exemption from Texas tax. One of the most common questions I am asked here in Parker County is: "Is this ranch land ag exempt?" If the answer is no, the follow up is, "How do I become Ag Exempt?" Who Qualifies for Agricultural and Timber Exemptions?
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