Were pressure washers used to clean farm and ranch equipment exempt from Texas sales tax?

Plain-English summary

The Comptroller said high-pressure washers could be sold tax-free when they were used exclusively to maintain equipment that itself was used exclusively on farms or ranches to produce food, grass, feed, or other agricultural products for sale in the regular course of business.

The seller could accept a validly executed exemption certificate from a qualifying farmer or rancher. STAR also carries a later-law alert: H.B. 268 added a Comptroller-issued registration-number requirement for certain agricultural and timber exemptions effective January 1, 2012.

What this means for you

Both exclusive-use conditions mattered in the 1990 answer: exclusive maintenance use for the washer and exclusive qualifying agricultural use for the equipment being cleaned. A current claim also needs to account for the later registration requirement flagged by STAR.

Common questions

Were all washers sold to farmers exempt? No. The letter required the washer and the maintained equipment to meet the stated exclusive-use tests.

What products did the letter identify? Food, grass, feed, and other agricultural products produced for sale in the regular course of business.

What documentation could the seller accept? A validly executed exemption certificate.

Did the law later change? Yes. STAR says a registration-number requirement for certain agricultural and timber exemptions took effect January 1, 2012.

Citations and references

• Comptroller Rule 3.296, concerning agriculture.
• Comptroller Rule 3.287, concerning exemption certificates.
• H.B. 268, 82nd Regular Legislative Session (2011), as described in STAR's later-law alert.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9008L1036G08

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.

August 15, 1990

Dear **:

Thank you for your letter dated July 31, 1990, asking whether the sale of high
pressure washers to farmers to clean their equipment is exempt from Texas sales
and use tax.

The washers will be exempt if they are used exclusively to maintain equipment
used exclusively on farms or ranches in the production of food, grass, feed, or
other agricultural products for sale in the regular course of business. In
other words, you may accept a validly executed exemption certificate from
farmers and ranchers for your washers.

I have enclosed Rules 3.296 (agriculture) and 3.287 (exemption certificate) for
your convenience.

This response is based on the facts presented in your letter. The response may
change if the facts change or if there are additional relevant facts.

If you have any questions, please do not hesitate to write me or call me
toll-free at 1-800-252-5555, extension 34662.

Sincerely,

Jerry Oxford
Tax Correspondence