Texas Agriculture Sales Tax Exemption Number

Posted by Admin SATXProperty on Monday, November 21st, 2011 at 8:41pm.

 Farmers and Ranchers Require Agriculture Sales Tax Exemption Number

 Written by Randy Watson 

Mission Realty San Antonio Real Estate Randy Watson 210-744-4514

Texas Farmers and Ranchers... Have you submitted your application for a Texas Agriculture and Timber Exemption Registration Number? (Ag/Timber Number.) Under a new state law passed by the Texas Legislature in 2011, commercial agriculture or timber producers will need an Ag/Timber Number issued by the Comptroller's office to make eligible sales tax-exempt purchases for their business.

Beginning January 1, 2012 in order to make sales tax exempt agricultural related purchases you must have this number. To claim the sales tax exemption from the Texas Sales tax, the item being purchased must be used in the regular course of business exclusively on a farm or ranch in the production of agricultural products or exclusively to produce timber products for sale.

How do you get your registration number? There are 2 ways to register.

Apply online at www.getreadytexas.org. It's a fairly simple straight forward application. Log in or create an account at the Texas Comptroller Office's "MyCPA" website. Once you have an "MyCPA" account you'll need basic information about your operation, such as business name, description and address, you will need your Social Security number (for internal use only). Businesses registered with the Texas Secretary of State (SOS) (Corporations, LLC's, etc.) will need to provide the file number as well. You can find it using the SOS Taxable Entity Search.

You can print a copy of your confirmation letter upon completion, or write the registration number down. Texas will mail you a confirmation later on the next business day after the application has been completed.

Or you may apply on Paper. If you prefer to apply for your registration number via a paper application, you can do one of the following:
Download the paper application from the Comptroller's website: AP-228 Application for Texas Agricultural and Timber Exemption Registration Number (PDF); or Call 1-800-252-5555 to request that a copy of the application be mailed to you.

Once complete, mail your application to the address provided on the form. Mailed applications may take three to four weeks to process, and you will not receive your number instantly (as you will through the online application). Once your mailed application is processed, you will receive your registration number in the mail.

Mission Realty San Antonio Real Estate Randy Watson 210-744-4514

The following items are always exempt and an Ag/Timber Number is not required:

  • Horses, mules and work animals commonly used in agricultural
  • Animal life, the products of which ordinarily constitute food for human consumption, such as cattle, goats, sheep, chickens, turkeys and hogs
  • Feed, including oats, corn, chicken scratch and hay, for farm and
  • Seeds and annual plants, the products of which are commonly recognized as food for humans or animals,such as corn, oats and soybeans) or for fiber, such as cotton seed.

What activities DO NOT qualify and are not eligible for a sales tax exemption?

  • home gardening
  • horse racing, boarding or training
  • trail rides and zoos
  • florists or similar retailers who maintain plants prior to sale
  • wildlife management and conservation
  • hunting and fishing operations, including aerial hunting
  • predator control and/or wildlife/livestock
  • censuses or surveys
  • commercial fishing
  • companion animal (pet) breeding and kennels

Who DOES qualify for a sales tax exemtion and is eligible for a Texas Agricultural and Timber Exemption Number?

A person, including a non-Texas resident, engaged in the production of agricultural or timber products for sale in the regular course of business is eligible for a registration number. This number can be used to claim an exemption from Texas sales tax on the purchase of qualifying items. Included for eligibility for registration numbers are persons in these groups

  • farmers and ranchers who raise agricultural products to sell to others
  • persons engaged in aquaculture and apiculture; (i.e. commercial fish farms or bee keepers)
  • custom harvesters
  • persons engaged in agricultural aircraft operations, as defined by 14 C.F.R. Section 137.3 (crop dusting)
  • commercial nurseries engaged in fostering growth of plants for sale (i.e., growing stock from seed or cuttings, replanting seedlings in larger containers)
  • timber producers, including contract lumberjacks
Texas Department of State
For more information visit their website www.window.state.tx.us/taxinfo/agriculture or call toll-free 800-252-5555
Mission Realty San Antonio Real Estate Randy Watson 210-744-4514
    Randy Watson on Twitter Randy Watson on Facebook Randy Watson on LinkedIn Randy Watson Blogs RSS Feed
Please share your thoughts! Leave a blog comment below. You are invited to join in on a conversation with on-topic and thoughtful/meaningful comments or possibly as a guest blog contributor. The San Antonio Real Estate and South Texas Blog(SATXBlog) is my personal blog to share all kinds of thoughts and information. All comments and posts are reviewed, approved and may be edited or moderated. No Spam commenters. No web links within comments. Blatant self-promotion and advertising will not be tolerated.

P.S. If you are wanting to search online for San Antonio real estate, look no further. If you know anyone wanting to buy or sell San Antonio real estate let them know about me and my website.


Blog Tags

7 Responses to "Texas Agriculture Sales Tax Exemption Number"

Randy Watson wrote:
A question came in about what to do if you lost your number or don't remember it... the only thing I can suggest is to call the State at 1-800-252-5555 or if you registered online to log back in and check for your AG Number.

Hope this helps.

Thanks
Randy

Posted on Monday, December 5th, 2011 at 10:39am.

Paul wrote:
What do business that will be accepting the agricultural tax emption need to get upon a purchase?

Posted on Tuesday, December 6th, 2011 at 9:53am.

Randy Watson wrote:
Paul,

Generally, the businesses will just need your tax number. Those that you do business regularly with the agriculture community will know what to do. Some of the less frequented business may have you wait for the manager to help out with the process.

Hope this helps.

Thanks
Randy

Posted on Tuesday, December 6th, 2011 at 11:12am.

Coalson wrote:
We have two entities that operate different ranches. Do we need two exemption numbers or will one suffice?
Thank you.

Posted on Tuesday, December 20th, 2011 at 9:24am.

Randy Watson wrote:
Thanks for your questions, but sorry, I don't know if having 2 entities you need 2 different numbers or not... I'd pick up the phone and call them if I were you. You can call the State at 1-800-252-5555.

Thanks and Merry Christmas

Posted on Tuesday, December 20th, 2011 at 9:42am.

pat gyllenband wrote:
Lots of my customers are saying they have applied for and have the number but not with them. Then they say I can look it up online...is that so and if so where can I do this?

Posted on Tuesday, August 21st, 2012 at 3:04pm.

SATXProperty Admin wrote:
Thanks for replying to my blog! I really appreciate it.
Yes, you should be able to look your customers Agricultural and Timber Exemption Registration Tax Number up online...
https://ourcpa.cpa.state.tx.us/regagexsearch/

Posted on Tuesday, August 21st, 2012 at 3:15pm.



Leave a Comment