Ezel / Tax Rulings / TX
TX 9008L1036G08 Sales and/or Use Tax (State,Local,MTA) 1990-08-15

Were pressure washers used to clean farm and ranch equipment exempt from Texas sales tax?

Short answer: Yes, if used exclusively to maintain equipment used exclusively to produce agricultural products for sale; a later registration rule also applies.

Apply this to your situation

This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. STAR flags this document with an ALERT that H.B. 268 (82nd Legislature, 2011) added an agricultural-and-timber exemption registration-number requirement effective January 1, 2012. 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

The Comptroller said high-pressure washers could be sold tax-free when they were used exclusively to maintain equipment that itself was used exclusively on farms or ranches to produce food, grass, feed, or other agricultural products for sale in the regular course of business.

The seller could accept a validly executed exemption certificate from a qualifying farmer or rancher. STAR also carries a later-law alert: H.B. 268 added a Comptroller-issued registration-number requirement for certain agricultural and timber exemptions effective January 1, 2012.

What this means for you

Both exclusive-use conditions mattered in the 1990 answer: exclusive maintenance use for the washer and exclusive qualifying agricultural use for the equipment being cleaned. A current claim also needs to account for the later registration requirement flagged by STAR.

Common questions

Were all washers sold to farmers exempt? No. The letter required the washer and the maintained equipment to meet the stated exclusive-use tests.

What products did the letter identify? Food, grass, feed, and other agricultural products produced for sale in the regular course of business.

What documentation could the seller accept? A validly executed exemption certificate.

Did the law later change? Yes. STAR says a registration-number requirement for certain agricultural and timber exemptions took effect January 1, 2012.

Citations and references

  • Comptroller Rule 3.296, concerning agriculture.
  • Comptroller Rule 3.287, concerning exemption certificates.
  • H.B. 268, 82nd Regular Legislative Session (2011), as described in STAR's later-law alert.

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.

August 15, 1990

Dear **:

Thank you for your letter dated July 31, 1990, asking whether the sale of high
pressure washers to farmers to clean their equipment is exempt from Texas sales
and use tax.

The washers will be exempt if they are used exclusively to maintain equipment
used exclusively on farms or ranches in the production of food, grass, feed, or
other agricultural products for sale in the regular course of business. In
other words, you may accept a validly executed exemption certificate from
farmers and ranchers for your washers.

I have enclosed Rules 3.296 (agriculture) and 3.287 (exemption certificate) for
your convenience.

This response is based on the facts presented in your letter. The response may
change if the facts change or if there are additional relevant facts.

If you have any questions, please do not hesitate to write me or call me
toll-free at 1-800-252-5555, extension 34662.

Sincerely,

Jerry Oxford
Tax Correspondence

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