Reminder: Agriculture tax exemption holders need to renew their numbers by Dec. 31

Kay Ledbetter, Texas AgriLife Today

December 19, 2023

Renewal only rolls around once every four years, so the Texas A&M AgriLife Extension Service is reminding all agriculture producers that the Agricultural and Timber Exemption numbers they currently hold will expire on Dec. 31.

A red tractor goes through a field of young corn.
Agriculture operators are reminded to renew their Agricultural and Timber Exemption tax numbers prior to Dec. 31. (Texas A&M AgriLife photo)

The Texas Comptroller’s Office states: You must renew your number to continue to claim an exemption on qualifying agriculture and timber purchases made after that date. The Comptroller’s Office mailed out renewal letters in August, but if the renewal hasn’t been completed, the time is short.

“This is one of those housekeeping items that is easy to overlook,” said Tiffany Lashmet, J.D., AgriLife Extension agriculture law specialist, Amarillo. “Everyone involved in agriculture in Texas should take the time to ensure they have updated their Agricultural and Timber Exemption registration numbers so they do not run into any issues in the new year.”

Agriculture and timber producers in Texas are exempt from paying sales taxes on certain items used exclusively to produce agriculture and timber products, Lashmet said. Tractors, seed, fertilizer and medication for livestock are all examples of items exempt from sales tax for producers with a valid agriculture and timber exemption number.

Qualifying activities

Lashmet said the following activities qualify for agriculture tax exemptions: farming, ranching, fiber production, timber production/contract logging, operating feedlots or fish farms, beekeeping, custom harvesting, crop dusting, growing plants for commercial nurseries, veterinary businesses making farm or ranch calls, FFA or 4-H projects, and those teaching an agricultural course. 

Those activities that do not qualify for a sales tax exemption include rodeos, horse boarding, training, racing, and trail rides, hunting and fishing operations, those with companion animals, wildlife management and conservation, and kennels and other animal boarding businesses. 

For a complete list of who qualifies, what activities qualify and what you need to do to apply, visit the Comptroller’s Office website.


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