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Agricultural and Timber Exemptions and Texas Taxes

Who Qualifies for Agricultural and Timber Exemptions?

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.

All 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.

If you do not have a valid ag/timber number, you must pay tax to retailers on your purchases.

Your business type must be listed below to qualify for tax exemption on certain items or for an ag/timber number.

 

Which Activities Qualify?

  • farming or ranching for the purpose of raising agricultural products for sale
  • timber production (including contract logging)
  • feedlot operation;
  • commercial fish farm operation;
  • bee keeping;
  • custom harvesting;
  • crop dusting (as defined by 14 CFR Section 137.3);
  • growing plants for sale in a commercial nursery;
  • a veterinary business that makes farm or ranch calls;
  • Future Farmers of America or 4-H; or
  • teaching an agricultural vocational course.

 

Which Activities do NOT Qualify?

  • home gardening;
  • horse racing, boarding, training or trail rides;
  • rodeos, circuses or zoos;
  • florists or similar retailers who maintain plants before sale;
  • wildlife management and conservation;
  • hunting and fishing operations, including aerial hunting;
  • predator control;
  • wildlife or livestock surveys;
  • commercial fishing;
  • companion animal (pet) breeding; and
  • kennels or other animal boarding businesses.

Application for AG/Timber Number

AG Exemption Application (1 – D – 1 Form)

More Information on Texas AG Exemption