Ezel / Tax Rulings / TX
TX 8805L0875G09 Sales and/or Use Tax (State,Local,MTA) 1988-05-24

Were broiler-house litter cleaning and wood shavings used as a farm desiccant taxable in Texas?

Short answer: No. Texas said cleaning wood shavings and sawdust from broiler-house floors was a nontaxable service to farmers. The provider could buy shavings and sawdust tax-free with an exemption certificate when they were used as a farm desiccant. STAR warns that a 2011 amendment added an agricultural-registration-number requirement effective January 1, 2012.

Apply this to your situation

This page answers the general question as of 1988. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1988
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 is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
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

Texas held that cleaning wood shavings and sawdust litter from broiler chicken houses was not a taxable service. When used on the broiler-house floor as an agricultural desiccant, the shavings and sawdust could be purchased tax-free by the service provider using an exemption certificate.

STAR adds a later alert: H.B. 268 from the 2011 legislative session required a Comptroller-issued registration number for certain agricultural and timber exemptions beginning January 1, 2012.

What this means for you

Poultry-house cleaners should distinguish the nontaxable cleaning service from purchases of materials used in the work and comply with current agricultural exemption registration requirements.

Common questions

Is broiler-house litter cleaning taxable? No. Can the provider buy the shavings tax-free? Yes, when used as a farm desiccant and supported by the required exemption documentation. Is the 1988 procedure current? Not by itself; STAR flags the later registration-number requirement.

Citations and references

  • H.B. 268, 82nd Reg. Legislative Session, 2011 — STAR alert for the registration-number change

Source

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.

May 24, 1988

Dear **:

Thank you for your letter of recent date regarding the taxability of services
rendered cleaning litter from broiler chicken houses.

The cleaning of wood shavings and sawdust from the floors of broiler chicken
houses is not a service subject to sales tax. The charge for this service to
farmers is not taxable.

The wood shavings and sawdust when used for agricultural purposes, such as on
the floor of the broiler chicken house, would qualify as a desiccant (drying
agent) and could be purchased tax free by the provider of the service. The
provider of the service should issue an exemption certificate to suppliers when
purchasing the wood shavings and sawdust. The reason for the exemption would be
"to be used as a desiccant on a farm."

If we can be of further assistance please write to us or call toll free from
anywhere in Texas at 1-800-252-5555. Our regular number is 512/463-4600.

Sincerely,

Wanda Hutcheson
Tax Policy Division

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