Which animal feed, medicines, and supplements were exempt from Texas sales tax?

Plain-English summary

The Comptroller explained the 1990 tax treatment of feed and related products under Rule 3.296.

Hay, corn, oats, and other feed normally consumed by farm and ranch animals, animals held for sale in the regular course of business, and wildlife were exempt. That included work animals, animals whose products ordinarily became human food, and breeding animals whose offspring were held for sale. Sellers did not need exemption certificates for feed normally consumed by farm or ranch animals or wildlife.

Feed for dogs, cats, rabbits, hamsters, tropical fish, and similar animals was generally taxable. A specific qualifying use—such as professionally trained dogs used to aid disabled people or perform protective services—could support exemption with a certificate. Pets and animals held for sport or show did not qualify on that basis.

Medicines, vaccines, wormers, and vitamin or mineral supplements used exclusively for farm or ranch animals on a farm or ranch were exempt, but the seller had to retain an exemption certificate because those products were taxable for pets or show animals.

STAR adds a later-law alert that 2011 legislation required a Comptroller registration number for certain agricultural and timber exemptions beginning January 1, 2012.

What this means for you

The animal's use and the product category mattered. Some ordinary farm and wildlife feed needed no certificate, while special-use pet feed and farm medicines required documentation; later registration rules may also apply.

Common questions

Was ordinary feed for farm animals taxable? No.

Was wildlife feed taxable? No.

Was pet food taxable? Generally yes.

Could food for a trained service or protection dog qualify? Yes, with an exemption certificate stating the qualifying use.

Were farm-animal medicines exempt? Yes when used exclusively on a farm or ranch, with a certificate.

Citations and references

• 34 Tex. Admin. Code Rule 3.296 (agriculture, animal life, feed, seed, plants, and fertilizer)
• 34 Tex. Admin. Code Rule 3.287 (exemption certificates)
• H.B. 268, 82nd Regular Legislative Session (2011 registration-number requirement; STAR 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/9010L1048C11

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.

October 8, 1990

Dear **:

I am responding to your letter questioning the taxability of feed that
are sold through your feed store. I apologize for the delay in providing
this response and for the conflicting information you have received in
the past.

I would like to be able to provide a "once and for all" response, however,
I cannot. The application of sales and use tax changes as a result of many
external factors. When there are statute changes by the legislature, court
decisions, and administrative rulings, the previous application of tax on
a given issue may change. I will respond to your inquiries based upon
current application. Please keep in mind that these may change; you should
utilize every source available to keep yourself abreast of current
taxability status.

I have enclosed a copy of Rule 3.296 - Agriculture, Animal Life,Feed, Seed,
Plants, and Fertilizer. This rule discusses the application of tax on feed
for various types of animal life. The list you provided specifies feed on
certain entries while other entries list only the animal. I have responded
based upon the presumption that each entry is questioning the taxability
of feed for these animal types. I did not respond on the taxability of the
animals.

Sales tax is not due on the receipts from sales of, and the storage, use
or consumption of, hay, corn, oats, and any other type feed normally
consumed by farm and ranch animals, animals which are held for sale in the
regular course of business, and wildlife. Included in this rule is feed
for animals such as horses, mules, work animals, and any form of animal
life of any kind, the products of which ordinarily constitute food for
human consumption, feed for animals held for breeding purposes whose
offspring are held for sale in the regular course of business, and wildlife.

Sales tax is due on the receipts from sales of feed purchased for an animal
that might include, but are not limited to, dogs, cats, rabbits, hamsters,
and tropical fish. Anyone claiming exemption from tax on feed for these
animals should issue an exemption certificate stating the reason the
exemption applies. An example would be dog food purchased for feeding dogs
that are both professionally trained and used specifically for the aiding
of handicapped individuals or the performance of protective services. This
exemption does not include feed for animals raised, trained, or held as
pets for sport or show. However, it is not necessary to maintain exemption
certificates on the sale of feed that is normally consumed by farm and
ranch animals or wildlife.

Medications, vaccines, worming solutions, and vitamin and mineral
supplements for farm and ranch animals which are used exclusively on a farm
or a ranch are exempt from tax. An exemption certificate must be maintained
in lieu of tax because these items are taxable when sold for use on animals
held as pets or for show.

The following codes are for use in determining the taxability of items on
the enclosed list: e - exempt, no certificate is required; T - taxable;
E-C - taxable unless the purchase for a specific use qualifies for
exemption in which case a certificate is required. Please see rule 3.287
regarding exemption certificates.

I trust this restating of the information found in the enclosed rule and
the indication of taxability on your list proves helpful.

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

You may also write to Tax Correspondence, Comptroller of Public Accounts.

Sincerely,

Tax Policy Division
Tax Correspondence