Are the mileage, labor, and parts charges to repair a freestanding farm platform scale used to weigh grain exempt from Texas sales tax the same way the scale itself is?

IMPORTANT: this ruling's exemption now requires a registration number STAR's currency alert flags

Before relying on the analysis below, note the alert the STAR system itself attaches to this document: the Tax Code was amended by H.B. 268, 82nd Regular Legislative Session (2011), effective January 1, 2012, requiring anyone claiming a sales tax exemption for certain agricultural and timber products to apply for and provide a registration number issued by the Comptroller. This 2001 letter predates that requirement entirely — a farmer relying on this ruling's reasoning today must also hold a valid ag/timber registration number for the exemption to apply.

Plain-English summary

A farmer asked the Comptroller to confirm the Texas sales tax exemption status of repairs to an above-ground flat-top platform scale used to weigh grain before it went into storage bins, submitting a photo of the scale with the request.

The Comptroller confirmed the exemption on two connected points:

1. The scale itself: freestanding scales are tangible personal property, and they qualify for the agricultural exemption if used exclusively in agricultural operations (Tax Code § 151.316).
2. Repairs to the scale: Rule 3.3111(a) exempts services to repair, restore, remodel, or maintain tangible personal property that is exempt by its nature, its use, or a combination of both, at the time of sale. Because the freestanding scale itself qualifies for the exemption, repair services on it — mileage, labor, and parts — are exempt too, per § 151.316 and Rule 3.296.

The letter's subject line frames this as a "freestanding vs. attached to real property" distinction, implying that a scale permanently affixed to real property might be analyzed differently (as a real property improvement rather than exempt tangible personal property) — though the specific facts here concerned only a freestanding scale.

What this means for you

Farmers and ranchers with agricultural equipment

Repairs, restoration, and maintenance on your exempt agricultural equipment (like a freestanding grain scale used exclusively in farm operations) can be exempt from sales tax right along with the equipment itself — but as of January 1, 2012, you must have a Comptroller-issued agricultural/timber registration number on file to claim the exemption. This 2001 ruling's reasoning is still sound, but the registration requirement is a separate, newer condition layered on top.

Repair shops and mobile equipment repair services serving farms

Confirm your farm customer holds a current agricultural/timber registration number before treating repair charges on their qualifying equipment as exempt — the underlying exemption logic from this ruling holds, but the registration-number requirement added in 2012 is now a prerequisite.

Accountants and tax professionals

This is a clean example of the "repair follows the exempt status of the underlying property" principle in Rule 3.3111(a) — but flag the 2011 H.B. 268 registration-number requirement whenever citing agricultural-exemption rulings from before 2012, since that's a load-bearing change to eligibility mechanics, not just a citation update.

Common questions

Q: Is a freestanding farm scale exempt from Texas sales tax?
A: Yes, if used exclusively in agricultural operations, under Tax Code § 151.316 — though since 2012, the owner must also hold a Comptroller-issued agricultural/timber registration number to claim the exemption.

Q: Are repairs to an exempt farm scale also exempt?
A: Yes — Rule 3.3111(a) extends the exemption to repair, restoration, remodeling, and maintenance services on property that is exempt by nature or use, which covers labor, mileage, and parts charges.

Q: Does this ruling's exemption still work exactly as described today?
A: The underlying reasoning holds, but as of January 1, 2012, a registration number from the Comptroller is also required to claim the agricultural/timber exemption — a requirement that didn't exist in 2001 when this letter was issued.

Q: Does a scale permanently attached to real property get the same treatment?
A: This letter's subject line suggests attached scales may be analyzed differently (as real property rather than exempt tangible personal property), but the ruling itself addresses only the freestanding scale presented.

Q: Can another farmer rely on this letter?
A: No. It answers this specific taxpayer's facts (a freestanding grain scale) and predates the 2012 registration-number requirement; a farmer today must independently confirm both exclusive agricultural use and current registration status.

Citations and references

Statutes and rules:

• Tex. Tax Code § 151.316 (Agricultural Exemption)
• 34 Tex. Admin. Code Rule 3.296 (Agriculture)
• 34 Tex. Admin. Code Rule 3.3111(a) (Repair, Restoration, and Remodeling Services)
• H.B. 268, 82nd Regular Legislative Session (2011), effective 01/01/2012 (agricultural/timber exemption registration number requirement)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200106323L

Original ruling text

ALERT: This document may be affected by changes to the Tax Code which was amended by H.B. 268, 82nd Reg. Legislative Session, 2011. The amendment required persons claiming a sales tax exemption for certain agricultural and timber products to apply for and provide a registration number issued by the Comptroller, effective 01/01/2012.

June 8, 2001

Dear **:

Thank you for your recent letter regarding your agricultural operation, equipment repairs and Texas sales tax.

You requested confirmation on the exemption of Texas sales tax on repairs on an above ground flat top platform scale used to weigh grain before putting it into storage bins. You included a photo of the scale.

Freestanding scales are tangible personal property and qualify for the agricultural exemption if used exclusively in agricultural operations. Texas Tax Code Section 3.3111(a) exempts services to repair, restore, remodel, or maintain tangible personal property that at the time of its sale is exempt by its nature or use or a combination of its nature and use. Thus, services to repair, restore, or maintain freestanding scales located on a farm or ranch are exempt. The charges for mileage, labor and parts to repair a scale that qualifies for exemption under the Texas Tax Code Section 151.316 and Rule 3.296 are not subject to Texas sales tax.

This opinion is based on the facts presented. Additional or different facts may yield different results.

You may call me toll free 1-800-531-5441, extension 5-9787, if you have any questions or need more information. The direct line is 512/305-9787. You may also write to Tax Policy Division, Comptroller of Public Accounts.

Sincerely,

Philip Knisely

Tax Policy Division