Ezel / Tax Rulings / TX
TX 8707L0827D09 Sales and/or Use Tax (State,Local,MTA) 1987-07-29

Were building components and materials used to build or repair a farm barn exempt from Texas sales tax?

Short answer: No. The Comptroller said barn building components and materials were taxable, so the seller could not accept an exemption certificate for those purchases.

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 building components and materials for farm barns under Rule 3.296 as then in effect. It does not analyze other farm equipment or supplies. Verify the current agricultural exemption and real-property rules before applying this historical conclusion. STAR documents may no longer represent current policy even when not marked superseded.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 seller asked about materials used to repair barns on a farm. The Comptroller said building and structural components and materials used for a barn were not exempt from sales tax.

Because those purchases were taxable, the seller could not accept an exemption certificate from the customer for them.

What this means for you

Farm use alone did not exempt the materials incorporated into a barn. The letter distinguishes taxable barn construction or repair materials from other agricultural items that might qualify under different facts.

Common questions

Were barn materials exempt because they were used on a farm? No.

Could the seller accept an exemption certificate? No, not for these purchases.

What rule did the Comptroller provide? Rule 3.296.

Citations and references

  • Comptroller Rule 3.296 — enclosed for the tax treatment of farm-related items.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller July 29, 1987

Dear ****:

Thank you for your recent letter requesting information on the taxability
of items used on a farm.

In our telephone conversation you stated that you were concerned about
the taxability of material used to repair barns. Buildings and structure
components and/or materials used to build a barn are not exempt from sales tax.
Accordingly, you may not accept an exemption certificate from your customer
for these types of purchases.

I am enclosing a copy of Rule 3.296 for your reference.

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 Policy Division.

Sincerely,
Sandi Skaggs
Tax Policy Division

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