Get Ready Texas - AG sales tax exempt cert

[jinman]

Things are about to get a bit tougher for people claiming Ag Sales Tax Exemption in our state. When I recently went to buy some tractor parts, my dealer's parts counter people gave me a form to fill out for the new ag/timber number requirement that begins on January 1, 2012. If you don't have that number and are buying anything except animals, feed, and seed, you'll need the new number. Here's a link to the state site.

Get Ready Texas

 

[EddieWalker]

Did you fill it out?

Eddie

 

[jinman]

Did you fill it out?

Eddie

Nope! I found myself in this list of NOT exempt. I'd rather pay the taxes than get crosswise with the Texas Comptroller. I'll not refund any of the previous exemptions I've claimed, but I'll surely do things different in the future.

Here's a list of NOT exempt from the website:

Activities that DO NOT qualify and are not eligible for a registration 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.

 

[EddieWalker]

I have a timber exception, but haven't sold any timber yet. I need to and I need to pay some capital gains on what I sell. So far, the few times that I've tried, nobody has shown up to buy what I had for them.

I'm debating on hauling some railroad tie lumber to a mill that specializes in that just to keep myself legal on my tax excemption.

Eddie

 

[WM75Guy]

The paper application gives a pop-up that makes you state you are in the commercial production of ag or timber products for sale in the regular course of business. Horses no longer count unless you raise and sell them, boarding does not qualify. Hay production does not count unless you sell it. Time for me to go ahead and start my cattle business. Untill then I will pay the taxes.

 

[RPW]

Here's a clarification for the state. If you are a producer i.e. selling to the public then you need the number. If you do not then no you don't. For years I've used my home phone number in many places for the exemption and that's still ok "IF" you are not selling anything. You can also get your number online immediately.

Good luck.

(edited) I was checking with the state comproller on this. Your situation may vary. I got mine as I "plan" on selling hay when I get my fields in order.

 

[WM75Guy]

I was just at TSC. They told me their cash register system would be purged 12/31/11 of existing exemptions. If you did not have one of the new registration numbers from the state you would have to pay taxes starting 01/01/12.

 

[blueriver]

Thats the way Oklahoma is ... my neighbor told me he got audited several years ago and advised me to throw away the card and pay your tax now ... cause you'll pay big time for it in the long run if you ever get audited.

So, where do you draw the line? Pay taxes at the cash register (small amount) or when you buy that $30K tractor (large amount) ... and your in the system they have a record of almost anything you purchase. TSC here keeps your number on file and when you check out they ask for your phone number which brings up your tax excempt number and the computerized cash register knows whats farm use and whats not.

 

[econometrics]

I was just down at the county tax office to renew my "Farm Use" plates for my utility trailer.

The kind clerk at the desk told me that you now have to have an Ag/Timber Number in order to get Farm Use plates for vehicles or trailers. She said this went into effect about 2-3 months ago.

Since I'm on a 1-d-1W (wildlife) exemption, I can't get an Ag/Timber Number. Which means I will now have to pay $60/yr for my trailer registration vs. $6 per year. :thumbdown:

 

[Corkpuller]

An old thread I know.
But, I'm scratchin my head over whether or not to apply for this Sales Tax Exemption # for Timber.

I've had two different people tell me, as long as I've got Timber that I "could" sell, it's no problem.
One was a trailer dealer who has a Timber Exemption on his place, the other was a tractor dealership, who gave me the forms to fill out, or, if I bought a tractor from them they'd fill it out and send it in for me.

The part about "in the commercial production of timber products" is what has me apprehensive.
It's too late in life for me to wind up in the Penitentiary, or be penalized for falsifying documents.

I've got just under 9 acres of a lot of 100' plus pines.
So, reckon I plan on sellin some timber someday, right? Wrong?, kinda?
I would only use the Ag/Timber # for tractor, trailer purchases.
I wouldn't be using it to save sales tax on oil for my leaf blowers, or a rake, or a pair of gloves. But a chainsaw ought to qualify huh....

Any of y'all know the real story on the qualifications for this, legally.....?