Ezel / Tax Rulings / TX
TX 8706L0828C08 Sales and/or Use Tax (State,Local,MTA) 1987-06-30

Did a riding mower used to cut grass around commercial greenhouses qualify for Texas's agricultural machinery exemption?

Short answer: No. The mower maintained the grounds around the greenhouses rather than producing agricultural products for sale, so it did not qualify.

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 addresses one riding mower used for grounds maintenance around greenhouses. Its result turns on the mower not being used in production of agricultural products for sale. Verify current agricultural registration, machinery, and direct-use requirements. STAR documents may no longer represent current policy even when not marked superseded.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 requester used a larger riding mower to maintain grass around greenhouses. The Comptroller said the agricultural exemption covered machinery and equipment used to produce agricultural products for sale in the regular course of business.

The mower did not qualify because it maintained the area around the greenhouses rather than producing the agricultural products.

What this means for you

Use on agricultural premises was not enough. The equipment needed the production use described in the letter, while general grounds maintenance remained taxable.

Common questions

Was the riding mower exempt? No.

Why not? It cut grass around the greenhouses and was not used to produce agricultural products.

Would greenhouse operations alone establish the exemption? No. The letter focused on how the mower itself was used.

Citations and references

  • No statute or rule number is cited in the ruling text.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller June 30, 1987

Dear ***:

Thank you for your letter of June 4, 1987, concerning an agricultural
exemption for larger mowers used to maintain the areas around
greenhouses.

Under the agricultural exemption, no tax is due on machinery and
equipment
used in the production of agricultural products to be sold in the regular
course of business.

Since the riding mower is not used in the production of agricultural
products
but is used for mowing grass around the greenhouses, it does not qualify
for
the exemption.

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,
Adina Whittemore
Tax Policy Section
Tax Administration Division

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