Which listed agricultural software programs qualified for Texas sales-tax exemption as production, processing, packing, or marketing aids?

Plain-English summary

The Comptroller exempted four listed programs as software specifically designed to aid agricultural production, processing, packing, or marketing:

• Mixit-2 Dairy;
• Mixit +;
• Mixit-2+ Layer; and
• Mixit-3+.

Six programs were primarily for recordkeeping and did not qualify: Mixit-3, Mixit-4, Tag-It, Price-It, Multi Mixit, and Data Disks.

The seller had to obtain a properly completed exemption certificate from buyers claiming the agricultural exemption for a qualifying program.

STAR now places an alert above the letter: H.B. 268 amended the Tax Code, and effective January 1, 2012 people claiming sales-tax exemption for certain agricultural and timber products had to apply for and provide a Comptroller-issued registration number.

What this means for you

The historical line was functional. Programs directly aiding agricultural production or marketing qualified; programs primarily keeping records did not. The official later-law alert means the 1987 certificate procedure is not complete current guidance.

Common questions

Did every farm-related program qualify? No.

Why were six programs denied? The letter classified them as primarily for recordkeeping.

What did the seller need from a qualifying buyer? A properly completed exemption certificate.

Does STAR warn about later law? Yes. Its alert identifies a registration-number requirement effective January 1, 2012.

Citations and references

• H.B. 268, 82nd Texas Legislature, Regular Session (2011), identified in STAR's official later-law 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/8709L0833D13

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.

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller September 28, 1987

Dear ***:

I have reviewed the additional information which you supplied concerning
the
computer software programs which your company writes and sells.

The following programs will qualify for an exemption from sales tax as
software specifically designed to aid in the production, processing,
packing
or marketing of agricultural products:

Mixit-2 Dairy Mixit +
Mixit-2+ Layer
Mixit-3+

The following programs are primarily for record keeping purposes and do
not
qualify for exemption:

Mixit-3 Mixit-4 Tag-It
Price-It Multi Mixit Data Disks

You must obtain a properly completed exemption certificate from
purchasers
claiming an agricultural exemption on those programs which may qualify.

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,
Julie Pesl
Tax Policy Division