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Ezel / Tax Rulings / TX
TX 8701L0791A09 Sales and/or Use Tax (State,Local,MTA) 1987-01-22

Did feed troughs used at a Texas public sale barn qualify for the agricultural sales-tax exemption?

Short answer: Generally no. Feed troughs were taxable unless used on a farm or ranch or at a marketing facility operated by a farmer or rancher selling animals raised in the regular course of business.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
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 1987 Texas Comptroller letter conditions exemption for feed troughs on farm or ranch use or use at a qualifying producer-operated marketing facility. Agricultural, livestock, sale-barn, producer, marketing, registration, certificate, and local-tax rules may have changed or differ under other ownership and use facts. STAR documents may no longer represent current policy even when not marked superseded. Identities are redacted. This summary is informational only and is not legal or tax advice.
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

The Texas Comptroller said feed troughs used in a public sale barn were taxable unless they met one of two stated use conditions.

The troughs could qualify if used on a farm or ranch. They also could qualify at a marketing facility operated by a farmer or rancher who raised the animals held for sale in the regular course of business.

What this means for you

Use at a public livestock-sale location did not create an exemption by itself. The facility operator and the source of the animals mattered.

Common questions

Were ordinary public-sale-barn feed troughs taxable? Yes.

Could farm or ranch use qualify? Yes.

Could a livestock-marketing facility qualify? Yes, when operated by the farmer or rancher selling animals that producer raised in the regular course of business.

Citations and references

  • The letter cited no numbered statute or Comptroller rule.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller January 22, 1987

Dear ***:

Thank you for your letter of January 7, 1987, concerning the taxability
of
feed troughs used in a public sale barn facility.

The feed troughs are taxable unless used on a farm or ranch or at a
marketing
facility operated by a farmer or rancher who raises animals held for sale
in the regular course of business.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

If you have any questions or need more information, please call me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Administration Division.

Sincerely,
Julie Pesl
Tax Policy Section
Tax Administration Division

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