AGRICULTURAL AND TIMBER EXEMPTIONS AND TEXAS TAXES

Farmers, ranchers and timber producers can claim exemptions from some Texas taxes when purchasing certain items used exclusively to produce agricultural and timber products for sale.

What 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.

What Activities Do Not Qualify?

• home gardening;
• horse (PDF) 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.