Farm Use Non-Sales Tax

[RoyceTTU]

You can move this to Non-Sports if I'm past D-Day.....


As of Sept 1, 2011 the state of Texas is going to issuing a sales tax exemption number. The requirment for the number is actually Jan 1st though. Has anyone heard of this?

It was put on my desk today and to be honest, it needed to happen for a long time. Farm use tax exemptions will be handled much like Resale and church/gov't etc..exemptions.

Any farmers out there that has opinion?

[Trashman]

I'm a weekend farmer/rancher and I agree this loop hole should have been closed a long time ago.

[nt7on7]

My son has a burgeoning little farm business at times, and we go to Tractor Supply for most everything he needs. They let us set up the non-tax farm account number, and they give us a printout at the end of the year of all the expenditures for tax reasons.

However, it is frustrating to go into Lowe's and tell them it's non-taxable for farm use, and they give you a "What you talking bout, Willis?" type-look. I usually just say forget it and pay the tax. Maybe this will make it more universal and more accepted.

[bwdlionfan]

What types of things do farmers get tax exempt? I've been aware of tax exempt items as I previously worked in grocery management and would help fill large orders for churches and food banks. Even though most grocery items are tax free, paper products and other things were sold to them tax free.

[RoyceTTU]

What types of things do farmers get tax exempt? I've been aware of tax exempt items as I previously worked in grocery management and would help fill large orders for churches and food banks. Even though most grocery items are tax free, paper products and other things were sold to them tax free.

http://www.window.state.tx.us/taxinfo/taxpubs/tx94_101.html

It's kind of tricky.

For the most part everything is exempt except anything having to do with the up-keep of the House/Buildings and some machinery. Fuel also has a different set of guildlines.

Truth is when someone comes into a hardware store with a bolt, they say it's for farm use. Okay, who really knows if that guy is a farmer or really what he is going to use it for. Rules now allows the, so said farmer, to fill out a simple form and the retailer gives him no tax. Right now there is no associated ID number so really your going by the name and address provided in the event of an audit.

It's really a retailers pitfall. Almost impossible to rectify any problems after the fact.

I think this is a good thing and will help protect retailers in the future. Only thing I worry about is the older generation shoppers that will walk into our stores and get upset because of something we have no control over.

[bwdlionfan]

http://www.window.state.tx.us/taxinfo/taxpubs/tx94_101.html

It's kind of tricky.

For the most part everything is exempt except anything having to do with the up-keep of the House/Buildings and some machinery. Fuel also has a different set of guildlines.

Truth is when someone comes into a hardware store with a bolt, they say it's for farm use. Okay, who really knows if that guy is a farmer or really what he is going to use it for. Rules now allows the, so said farmer, to fill out a simple form and the retailer gives him no tax. Right now there is no associated ID number so really your going by the name and address provided in the event of an audit.

It's really a retailers pitfall. Almost impossible to rectify any problems after the fact.

I think this is a good thing and will help protect retailers in the future. Only thing I worry about is the older generation shoppers that will walk into our stores and get upset because of something we have no control over.

Anytime I buy anything in tractor supply they ask if it's for farm use of which I tell them no. Are you saying people could just lie and say 'yes' and tractor supply would pretty much sale them their items tax free? When I worked in grocery we had to have a card with a sale tax ID # on it to put in the computer.

[RoyceTTU]

Anytime I buy anything in tractor supply they ask if it's for farm use of which I tell them no. Are you saying people could just lie and say 'yes' and tractor supply would pretty much sale them their items tax free? When I worked in grocery we had to have a card with a sale tax ID # on it to put in the computer.

gov't/church and resale all have a #. Until now, Farms havn't been required to have a #. They fill out paper work and they are in the clear. For the most part it is an honor system.

The burdon really is with the retailer to go after the person if indeed they lied. Without having some sort of issued #, it makes that almost impossible.

[bwdlionfan]

gov't/church and resale all have a #. Until now, Farms havn't been required to have a #. They fill out paper work and they are in the clear. For the most part it is an honor system.

The burdon really is with the retailer to go after the person if indeed they lied. Without having some sort of issued #, it makes that almost impossible.


That is good then, there needs to be more accountability on this kind of thing.

[AP Panther Fan]

The only time this has ever affected me was when purchasing ATV's (4 wheelers). Stating they were for farm use saved a considerable amount of sales tax.

[Ernest T Bass]

We've always had a tax exempt ID number that we use at Tractor Supply, Gebo's, etc...

[buckeyebob]

The only time this has ever affected me was when purchasing ATV's (4 wheelers). Stating they were for farm use saved a considerable amount of sales tax.

I have two Kawasaki ATv's & a Mule...all are used on the farm where I live. My local Kawasaki dealer has started charging taxon parts, etc for these. I asked why (I have previosly furnished thaem a copy of my tax form that I sent in the prev. year) they started. Said they were audited & the tax bunch said to charge the tax & let the buyer file for a rebate for it...means I would have to fill out a form for the State, County, Town (+ a collge in some areas). THey said most of the people will not go to the trouble.

[buckeyebob]

We've always had a tax exempt ID number that we use at Tractor Supply, Gebo's, etc...

What kindof an ID isthat...was not aware it was available.

[sinton66]

I have two Kawasaki ATv's & a Mule...all are used on the farm where I live. My local Kawasaki dealer has started charging taxon parts, etc for these. I asked why (I have previosly furnished thaem a copy of my tax form that I sent in the prev. year) they started. Said they were audited & the tax bunch said to charge the tax & let the buyer file for a rebate for it...means I would have to fill out a form for the State, County, Town (+ a collge in some areas). THey said most of the people will not go to the trouble.

Yeah right. They keep that money and report it as "tax free". I'd tell them if you can't comply with the law, I'll find another outlet for my money.

[AP Panther Fan]

I have two Kawasaki ATv's & a Mule...all are used on the farm where I live. My local Kawasaki dealer has started charging taxon parts, etc for these. I asked why (I have previosly furnished thaem a copy of my tax form that I sent in the prev. year) they started. Said they were audited & the tax bunch said to charge the tax & let the buyer file for a rebate for it...means I would have to fill out a form for the State, County, Town (+ a collge in some areas). THey said most of the people will not go to the trouble.

I bought 3 Honda Ranchers and luckily the dealer in Corpus Christi was the one that suggested the farm use status because I never would have even thought of it. We live on a large piece of land, but the only thing I have ever grown is plants & flowers. I did grow some peppers in my topsy turvy once...lol.

I am probably the type of person that has ruined it for the rest of you (honest-to-God farmers).

[RoyceTTU]

I am probably the type of person that has ruined it for the rest of you (honest-to-God farmers).


Truth is your right. But on the other hand, the State of Texas left this so wide open with 0 regulation, I don't blame you one bit.