Texas farmers and ranchers have received an exemption of the state sales tax on items used to produce agricultural products. During hard times, it can be the difference between staying in business or not. Despite the law’s popularity, there have been many problems with the “proper” use of the agriculture tax exemption policy, and those who believe they are being victimized by its administration are becoming increasingly vocal.
Currently, anyone who buys products for use in agricultural production only has to state that he or she is sales tax exempt and fill out a form. When that form arrives in the Texas Comptroller’s office and there is a problem, the seller of that product may be liable for the tax.
There are many possibilities on why we should continue with this tax exemption for the benefit of those who farm and ranch, and no reasons for those who do not. An HB 268 bill has been filed in the Texas Legislature to address this problem. The bill requires farmers and ranchers to obtain a number that will prove their exempt status. It would also clarify the problem for those who falsely claim exempt status.
The voices complaining against the fraudulent use of the sales tax exemptions are growing. This could threaten the continuation of the agricultural sales tax exemption that is very important to Texas farmers and ranchers today.
Some items listed for agricultural tax exemption include: bailing twine/wrap, bailers, tractors, feeders, combines, corral panels, discs, farm machinery repair parts, farrowing houses, feed grinders, feed carts, forage harvesters, head gates, planters, pickers, pruning equipment, and many more.
For a complete list of items that qualify for exemption click here.
On another note Texas Farm Bureau has a new innovation in communication known as LeaderLink. LeaderLink is a computer network system that makes it easy to be the eyes, ears, and voice of the state’s largest farm organization.
Farmers and Ranchers often complain that no one is telling the story of agriculture. LeaderLink lets you sell your story, quickly and easily, to law makers in Washington and in Austin who can have a direct effect on your business.
You can sign up for LeaderLink by contacting your local Texas Farm Bureau’s Office at 325-646-5516 or the Brown County AgriLife Extension office at 325-646-0386 and give them your email address. You must be a Farm Bureau member to sign up.
Editor’s Note: Mike Stewart is working as an intern this semester with the Brown County AgriLife Extension Office and will graduate from Tarleton State University in Stephenville, Texas in May 2011.
