If you are in the agricultural or timber business and claim an agricultural exemption for Texas sales tax, it’s time for renewal of your Ag Timber sales tax exemption number! Texas state law requires farmers and ranchers claiming agricultural exemptions to register with the Texas Comptroller to obtain an Ag Timber sales tax exemption number. Farmers, ranchers and timber operators cannot purchase qualifying items tax free without a current updated Ag Timber sales tax exemption number. To claim the sales tax exemption, you must provide the Ag Timber Number to the seller on the appropriate form. See Publication 94-101 to learn more.
Who is eligible for the new Ag Timber Number?
Anyone engaged in the production of agricultural or timber products for sale in the regular course of business may complete an application for renewal of the Ag Timber Number for sales tax exemption, including:
- Farmers and ranchers who raise agricultural products to sell to others;
- Persons engaged in aquaculture and apiculture; (i.e., commercial fish farms or beekeepers);
- Custom harvesters;
- Persons engaged in agricultural aircraft operations, as defined by 14 C.F.R. (Code of Federal Regulations) 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.
Activities that DO NOT qualify and are not eligible for an Ag Timber Sales Tax Exemption Number
- 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; and
- companion animal (pet) breeding and kennels.
The online application has two parts. First, you will register for a personal login account which creates a secure online profile for you. Once registered, you will directly access the application, which should take about 10 minutes to complete. No signature is required, and the Texas Comptroller’s Office will issue your Ag/Timber Number at the end of the application process.
What You Need Before You Begin:
- In addition to 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 will need to provide the file number as well. You can find it using the Taxable Entity Search.
- To view your confirmation letter online, you will need Adobe Acrobat Reader.
- You can print a copy of your confirmation letter upon completion, or write the Ag Timber Number down. The Texas Comptroller’s Office will mail you a confirmation letter on the next business day after after you complete the online application.
Renewal begins in October. To apply online, click here. Applicants who apply online will receive a registration number immediately. To receive an application by fax, call the Texas Comptroller’s Office at 1-800-531-1441.