Beginning Jan. 1, 2012, if you claim an exemption from sales tax on the purchase of certain items used in the production of agricultural and timber products, yes. In the Texas 82nd Regular Legislative Session, a bill was passed (House Bill 268) that requires a person claiming an exemption from sales tax on such purchases must provide a registration number issued by the Comptroller of Public Accounts on the exemption certificate issued to the seller. The Comptroller will provide a registration number to you upon your successful application for registration.
A registration number will be required in order to claim an exemption from Texas sales and use tax when purchasing the following goods and services:
A registration number is not required for the following types of agricultural items:
A person, including a non-Texas resident, engaged in the production of agricultural or timber products for sale in the regular course of business is eligible for a registration number that can be used to claim an exemption from Texas sales tax on the purchase of qualifying items included for eligibility for registration numbers are persons in these groups:
A person who is not engaged in the production of agricultural or timber products for sale is not eligible for a registration number and may not claim an exemption from tax when purchasing the items noted above. Examples of the types of activities that do not qualify for exemption include home gardening; horse racing; florists or similar retailers who only store or maintain plants prior to sale; wildlife management and/or land conservation; maintenance or operation of hunting and fishing leases; horse boarding; trail rides; commercial fishing; dog breeding and pet kennels.
To apply online, please visit http://www.window.state.tx.us/taxinfo/agriculture/get_ready_texas.html.
Paper applications are also available:
The primary owner or operator of the farm, ranch or timber operation may obtain a number that can then be used by any person authorized by the registrant. For example, if three different family members operate a family farm or ranch, one member of the family can apply for one registration number for the farm that all three can then use when making qualifying purchases. Similarly, a large corporate agricultural or timber operation that employs multiple personnel may obtain one number that can be used by all authorized employees when making qualifying purchases.
It is important to note, however, that the person to whom the registration number is issued is responsible for ensuring that all items purchased exempt from tax under the permit holder's registration number will be used in a qualifying, exempt manner.
See Tax Code Sections 151.316, 151.3162, 152.001(a)(13) and 152.091, as well as Rules 3.296, 3.367 and 3.72 for more information about the agricultural and timber production sales and motor vehicle tax exemptions.
Application: http://www.window.state.tx.us/taxinfo/taxforms/ap-228.pdf