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Ezel / Tax Rulings / TX
TX 8605L0732B01 Sales and/or Use Tax (State,Local,MTA) 1986-05-16

Was egg-production and processing equipment exempt when used exclusively on a farm or ranch by the original producer?

Short answer: Yes. The 1986 letter exempted equipment used exclusively on a farm or ranch by the original producer to produce and process agricultural products. STAR flags a later registration-number requirement.

Apply this to your situation

This page answers the general question as of 1986. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1986
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller letter published on STAR. Its result applies only to the addressed taxpayer's facts and historical law. STAR expressly alerts that H.B. 268 (2011) later required a Comptroller registration number for certain agricultural and timber exemptions effective January 1, 2012; verify current requirements before relying on the 1986 analysis. STAR documents may no longer represent current policy. Identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

Egg-production and processing equipment was exempt when used exclusively on a farm or ranch by the original producer in producing and processing agricultural products.

The letter enclosed resale and exemption certificates, applicable rules, and an agricultural-exemptions brochure, but their text is not reproduced in STAR.

STAR adds a later-law alert: H.B. 268, enacted in 2011, required people claiming exemptions for certain agricultural and timber products to obtain and provide a Comptroller registration number beginning January 1, 2012.

Common questions

Was the egg equipment exempt? Yes, under the exclusive-use and original-producer facts stated.

Where did it have to be used? On a farm or ranch.

Does the 1986 letter include today's documentation rules? No. STAR flags the later registration-number requirement.

Citations and references

  • H.B. 268, 82nd Texas Legislature, 2011 — later registration requirement stated in STAR's alert.

Source

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.

May 16, 1986

Dear ***:

Thank you for your letter concerning resale and exemption certificates in
Texas.

Enclosed are copies of a resale certificate and the applicable rule, an
exemption certificate and rule, and a copy of our agricultural exemptions
brochure.

Egg production and processing equipment is exempt from sales tax when
exclusively used or employed on a farm or ranch in the production and
processing of agricultural products by the original producer.

If you have any questions or need more information, please call us at
1-800-252-5555 toll free from anywhere in Texas. You may write us at
the Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division

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