Farmers and Ranchers Require Agriculture Sales Tax Exemption Number
Written by Randy Watson
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.
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

The Riverside Market in Boerne - on Main Street and SH-46, and the Dutchman's Market in Fredericksburg, on Main Street opposite the entrance to old Ft. Martin Scott fall into this category: Both of these places offer incredible home-made jerky and smoked sausage, and the Riverside also has incomparable brisket and whole roast chicken. Fortunately, some of my favorite purveyors of fine Texas comestibles have that fully-functioning website option. A handful of them are even represented on the shelves of the neighborhood HEB. Like Opa's smoked sausages - they've been firing up the smoke house for sixty years now. The New Braunfels Smokehouse products may not have penetrated quite so far into the local grocery store, but they - like Opa's have a substantial brick-and-mortar physical presence as well as the website for those who simply must indulge in a smoked tenderloin, a whole turkey or a sun-dried-tomato-and-chipotle sausage.
Fischer and Weiser foods - jams, jellies, sauces, salsas and salad dressings are also represented in San Antonio grocery stores; when I first began exploring Fredericksburg, though - they seemed only to be available in various gourmet foodie places in Fredericksburg itself. Their roasted raspberry-chipotle sauce is one of my constant favorites - as well as an answer to the question of what do you get when German and Mexican cooking traditions clash. I've had a bottle of it in the pantry pretty constantly since 1995. I am also pretty sure that I saw D.L. Jardines' smokin' hot salsas and sauces in the HEB also - but they have a website as well, and are available at places like Rustlin' Rob's and other foodie emporiums in Fredericksburg.
RayAnnVentures isn't at the point of being available at the grocery store everyday - they are still doing the rounds of the weekly markets throughout the the Hill Country with their output. Last fall I caught up to them at the Wimberly Market days - and oh, my. Fantastic pickles and jars of jelly that looked like cut-glass jewels, in the home-style two-piece-lid canning jars. Like home-made, only better. (BTW,
Okay, so maybe it is a little bit early to consider Christmas shopping, even though the Christmas decorations in retail stores went up as the Halloween decorations came down, with the speed of a Los Vegas blackjack dealer flipping through a deck of cards. It's time to consider Christmas, early or not. For myself, I developed the habit of doing so while stationed overseas, when the heavy parcels home had to be mailed by October in order to arrive by Christmas, which pushed my personal Christmas shopping back into the months of August and September . . . anyway, now I have a couple of shelves in the master bedroom closet that are dedicated to gift storage. That is, the things that we pick up throughout the year, thinking "Oh, that will be a splendid present for so-and-so!" Come December, all we need do is pull everything out and get busy with the tissue paper and ribbons.
For those who are not inclined to this kind of Christmas shopping, there are alternatives to the Big Box Store sameness; venues to purchase gifts that are unique – and made in America. The very nicest of them are a range of craft shows and markets, taking place locally over coming weekends, many of which also benefit local institutions.
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Goliad also has a Christmas craft fair, parade and community events. Christmas on the Square happens on the same Friday and Saturday. Their Saturday parade has a more traditional Texan flavor, as it usually features Santa arriving mounted on a long-horn, and attended by a mounted posse of cowboys. Goliad also features local authors – me, yet again. I love Goliad, by the way – especially at Christmas.
We were walking the dog this morning, when we noticed two of our neighbors deep in conversation in the driveway. The object of conversation seemed to be an occupied Hava-Hart trap, and naturally being terribly curious about anything going on in our neighborhood, we went over and joined the conversation, discovering that the occupant of the trap was a mature and deeply unhappy opossum. This was not entirely unexpected around here, actually. Possums turn up all the time – in fact, before we acquired the dogs, there were several of them that hung out in my back yard, going so far as to help themselves to the cat food that I put out for the outdoor cat. The cat, by the way, was perfectly amiable towards the opossum, as she very well might be, as the opossum had way more and very much sharper teeth than she did.
The neighbor in question was a trifle freaked about her catch, as she had actually set the trap for squirrels. This year, between the drought and a bumper crop of acorns on the numerous oak trees, the squirrels are being a particular pest. They are everywhere, digging holes in the flowerbeds, in the potted plants, and eating the roots of certain ornamental plants, and sending our dogs into noisy frenzies of excitement. The
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