Farmers, ranchers and timber producers with a valid agricultural and timber registration number must renew those by December 31, 2023
The ag/timber registration numbers are required under Texas law to claim a sales tax exemption on products used in the course of agricultural or timber production.
“This renewal process is part of helping farmers and ranchers reduce their input costs,” Brant Wilbourn, Texas Farm Bureau associate director of Commodity and Regulatory Activities, said. “We want to make sure everyone is aware that it’s time for the ag/timber number renewal in order to keep claiming those valid exemptions.”
Legislation was passed in 2011 that required a uniform renewal date for all numbers regardless of when they were first registered. They must be renewed every four years.
Eligible persons must renew their registration with the Texas Comptroller of Public Accounts by December 31, 2023 in order to continue claiming sales tax exemptions.
Anyone producing agricultural or timber products for sale can complete an application for an ag/timber number. That includes farmers and ranchers who grow agricultural products to sell to others, timber producers, custom harvesters, and aquaculture and apiculture producers. Those engaged in agricultural aircraft operations and commercial nurseries that grow stock from seed or cuttings, replant seedlings in larger containers and foster the growth of plants for sale are also eligible.
A registration number is not needed for seed, feed or livestock purchases, nor is it needed for veterinarian-prescribed items such as medication or topical products.
Items that may qualify for sales tax exemptions include fertilizers, pesticides, defoliants and desiccants used exclusively in agricultural production.
Machinery and equipment, irrigation systems, seedlings for timber, electricity and natural gas, some motor fuel and certain motor vehicle sales and use tax may also be claimed if used primarily for farming, ranching or timber production.
Retailers may accept and keep on file blanket exemption certificates, but those also need to be updated after Dec. 31 to include new expiration dates.
The Comptroller’s office recently mailed renewal information to individuals who hold current registration numbers. There is a unique WebFile number located in that letter that can be used to renew the registration online.
Those who wish to renew by phone may do so by calling 1-844-247-3639.
More information regarding ag and timber sales tax exemptions can be found online at comptroller.texas.gov/taxes/ag-timber/.
