Which animal feeds and horse health products were exempt, and when did the seller need an agricultural exemption certificate?

Plain-English summary

Feed for catfish in ponds and wild birds was exempt without an exemption certificate.

Feed for rabbits raised for human consumption or held for sale in the regular course of business also was exempt, but the seller needed a certificate because feed for pet rabbits was taxable.

Horse medication, vaccines, worming solutions, and vitamin or mineral supplements were exempt. Unless an item was clearly for horses only, the seller obtained an exemption certificate from the customer.

Rule 3.296(d) required at least one properly completed certificate on file for each customer claiming agricultural exemptions. A signed statement on an invoice was not acceptable as the initial exemption certificate, though the rule allowed it for later purchases after a valid certificate was on file.

STAR carries an alert that a 2011 amendment later required Comptroller-issued registration numbers for certain agricultural and timber exemptions beginning January 1, 2012. This page reports the 1989 ruling.

Common questions

Did catfish or wild-bird feed need a certificate? No.

Did qualifying rabbit feed need one? Yes.

Were horse medicines and supplements exempt? Yes.

Could an invoice statement replace the first certificate? No.

Citations and references

• 34 Tex. Admin. Code Rule 3.296(d)
• 34 Tex. Admin. Code Rule 3.287

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8909L0953E04

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

August 29, 1989

Dear ***:

Thank you for your letter dated August 24, 1989, concerning the
taxability of various items that you sell.

Feed for catfish in ponds and wild birds is not taxable. An
exemption certificate is not required. Feed for rabbits raised
for human consumption and rabbits held for sale in the regular
course of business is also exempt. An exemption certificate is
required, however, because feed for animals kept as pets is
taxable.

Medication, vaccines, worming solutions, and vitamin and mineral
supplements for horses are exempt. Unless the item is clearly for
horses only, then you should obtain an exemption certificate from
your customer.

Please refer to section (d) of Rule 3.296 for information on
exemption certificates. You should have at least one properly
completed exemption certificate on file for each customer claiming
agricultural exemptions. The signed statement on your invoice
is not acceptable as an exemption certificate but it is acceptable
for subsequent purchases as outlined in the rule.

I've also enclosed Rule 3.287 Exemption Certificates for your
review. You may make copies of the sample certificate to use as
needed.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact me if you have any additional
questions. You may write me, call toll-free 1-800-531-5441 from
anywhere in the Untied States or phone 512/463-4685.

Sincerely,
Julie Pesl
Tax Correspondence