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New Exemption Requirement for Commercial Agriculture and Timber Operations

New Exemption Requirement for Commercial Agriculture and Timber Operations

House Bill 268, passed during the 82nd Regular Legislative Session (2011), requires that a person claiming an exemption from sales tax on the purchase of certain items used in the production of agricultural and timber products must provide a registration number issued by the Comptroller of Public Accounts on the exemption certificate issued to the seller.

To view the application for the exemption registration number, click here.

Exemption Certificates

Beginning Jan. 1, 2012, purchasers claiming an exemption on qualifying items used in the production of food or other agricultural products are required to issue the new Texas Agricultural Sales and Use Tax Exemption certificate, Form 01-924.Purchasers of qualifying items used in the production of timber products must issue the new Texas Timber Operations Sales and Use Tax Exemption Certificate, Form 01-925. Click on the links below to download the certificates.

01-924 Texas Agricultural Sales and Use Tax Exemption Certification (PDF)
01-925 Texas Timber Operations Sales and Use Tax Exemption Certification (PDF)

The generic exemption certificate, form 01-339, should not be used to claim either the agricultural or timber exemptions on purchases made on or after Jan. 1, 2012. Blanket exemption certificates issued to suppliers on the old form must also be updated and replaced with new certificates for purchases made on or after Jan. 1, 2012.

Exemption Number Online Application

Also beginning on January 1, 2012, persons claiming an exemption from sales tax on the purchase of certain items used in the production of agricultural and timber products is required to have a Texas Agriculture and Timber Exemption Registration Number (Ag/Timer Number). The registration number applications are now available online at www.getreadytexas.org. Upon completion, be sure to print your confirmation letter and a copy of your application.
 

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