| (3) Farm trailers are also exempt from motor vehicle
sales and use tax and gross rental receipts tax if the primary use
of the trailer is by the original producers in processing, packing,
or marketing their own livestock or agricultural products. Use in
processing, packing, or marketing agricultural products by an agricultural
cooperative or gin is not exempt, unless the cooperative or gin can
prove the cooperative or gin itself is the original producer of all
agricultural products being processed, packed, or marketed, and that
those functions are performed at a location operated by the cooperative
or gin.
(4) A retail sale, use, or rental of a timber machine
or a timber trailer is not subject to motor vehicle sales and use
tax or gross rental receipts tax if the primary use of the timber
machine or timber trailer is in timber operations.
(5) A retail sale, use, or rental of an oilfield portable
unit, as defined in this section, is not subject to motor vehicle
sales and use tax or gross rental receipts tax. An oilfield portable
unit that would otherwise be subject to motor vehicle sales and use
tax, such as a trailer, becomes a taxable motor vehicle any time the
unit ceases to be used exclusively as an oilfield portable unit. The
tax is the obligation of the owner of the oilfield portable unit based
on the owner's current book value of the unit multiplied by the current
tax rate cited in Tax Code, §152.021(b). The tax should be remitted
directly to the comptroller using Form 14-112, Texas Motor Vehicle
Sales/Use Tax Payment. Tax due on diverted units that are held for
motor vehicle rental should be submitted on Form 14-117, Texas Motor
Vehicle Rental Tax Return. For more information regarding the taxation
of oilfield portable units, refer to §3.306 of this title.
(d) Claiming exemption.
(1) Farmers, ranchers, agricultural producers, and
timber operators must register with the comptroller and obtain a Texas
Agriculture and Timber Exemption Registration Number. This registration
number must be stated on the exemption certificate described in this
subsection and on the Application for Texas Certificate of Title/Tax
Statement (Form 130-U) filed with the County Tax Assessor-Collector
at the time of titling and/or registration. In addition, a person
claiming the exemption for a farm or timber machine has the burden
to show, at the time the vehicle is titled and/or registered, that
the vehicle has been properly adapted or modified to qualify for the
exemption.
(2) All persons engaged in the business of selling
or renting agricultural and timber items that are exempt from the
motor vehicle sales and use tax or gross rental receipts tax as described
in this section must obtain from all purchasers:
(A) A completed Texas Motor Vehicle Tax Exemption Certificate
for Agricultural/Timber (Form 14-319) or a completed Motor Vehicle
Rental Exemption Certificate (Form 14-305 Back) for qualifying motor
vehicle rentals;
(B) a copy of the Ag/Timber Registration Number Confirmation
letter issued by the comptroller (Form 01-926); or
(C) a blanket exemption certificate or the Ag/Timber
Registration Number Confirmation letter (Form 01-926) covering all
motor vehicle purchases or rentals, provided that the motor vehicles
being sold or rented are only of a type or quantity that would not
generally be used except on a farm or ranch or in timber operations.
When a person sells or rents both taxable motor vehicles and motor
vehicles that may qualify for exemption under this section, the seller
may either obtain an exemption certificate for each motor vehicle
that qualifies for exemption or obtain a blanket certificate at the
time the purchaser makes an initial exempt purchase or rental and
keep that certificate on file. When subsequent exempt purchases or
rentals are made, the invoice must be stamped with the words "exempt
agricultural purposes," and the purchaser must sign the invoice.
(3) All persons engaged in the business of selling,
renting, or leasing agricultural and timber items must retain a copy
of the documents described in paragraph (2) of this subsection at
their principal place of business for at least four years from the
date of the transaction.
|
| Source Note: The provisions of this §3.72 adopted to be effective December 6, 1996, 21 TexReg 11487; amended to be effective June 20, 2000, 25 TexReg 5913; amended to be effective November 14, 2013, 38 TexReg 7966; amended to be effective December 3, 2017, 42 TexReg 6630 |
