Which dog food, medicines, equipment, and supplies could a Texas kennel buy tax-free?

Plain-English summary

A kennel planned to raise puppies for sale, keep puppies for a race track, and board dogs.

Food for breeding animals whose offspring were held for sale, and food for those offspring, was exempt. The kennel could therefore buy dog food, including meat, tax-free for dogs raised for sale by giving the seller an exemption certificate. Food for dogs raised for the race track and for boarded dogs was taxable.

Over-the-counter vitamins, medicinal products, and dog wormer were taxable. The same categories were exempt when sold or dispensed for animals on a veterinarian's prescription.

The letter also treated fencing, collars, leashes, air conditioners, water coolers, muzzles, feeders, food and water bowls, a dog trailer, and dog-house materials as taxable. A motor-vehicle trailer used to transport dogs was subject to motor-vehicle sales tax at registration. The Comptroller did not decide the taxability of electrolytes because more information was needed.

What this means for you

The feed exemption followed the animal's breeding-for-sale purpose, not kennel ownership generally. Racing and boarding uses remained taxable, and the treatment of animal health products depended on a veterinarian's prescription.

Common questions

Was food for dogs raised for sale exempt? Yes, including food for breeding dogs whose offspring were held for sale.

Was food for race-track or boarded dogs exempt? No.

Were over-the-counter dog medicines exempt? No.

Were veterinarian-prescribed animal drugs exempt? Yes.

Did the letter decide electrolytes? No; it requested more information.

Citations and references

• Comptroller Rule 3.296(a)(2)(A) — agriculture and animal life
• Comptroller Rule 3.287 — exemption certificates
• Comptroller Rule 3.284(b)(2) — animal drugs and medicines

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9009L1045G10

Original ruling text

September 25, 1990

Dear **:

We received your letter questioning the taxability of items you will purchase
to use in your dog kennel business. According to your letter, you will raise
puppies to keep for the race track; raise puppies to sell; and board dogs.

Food for animals used for breeding purposes whose offspring are held for sale
is exempt along with the food for the offspring. Therefore, you may purchase
dog food (including meat for the dogs to eat) tax-free for the dogs you are
raising to sell. However, you must pay tax on the dog food for the dogs you are
raising for the race track and the dogs you are boarding. See section (a)(2)(A)
of the enclosed Rule 3.296 relating to agriculture and animal life. You must
provide the seller with an exemption certificate for the exempt dog food.
Enclosed is a copy of Rule 3.287 relating to exemption certificates.

Vitamins, medicinal products, or dog wormer purchased over the counter are
taxable. However, sales tax is not due on drugs or medicines sold or dispensed
for animals on a veterinarian's prescription. This would include the vitamins,
medicines, or dog wormer. See the section (b)(2) of the enclosed Rule 3.284
relating to drugs and medicines.

The following items are taxable:

• fencing materials
• dog collars/leashes
• air conditioners/water cooler
• dog muzzles
• dog feeders
• dog food bowls
• dog water bowls
• dog trailer
• dog house(materials)

A motor vehicle trailer used to transport your dogs is subject to motor vehicle
sales tax which is paid to the county tax assessor collector at the time of
registration.

Please provide more information about electrolytes in order for us to determine
their taxability.

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

If you have any questions you may call or write Tax Correspondence. You may
call toll free 1-800-252-5555, or our regular number is 512/463-4600. My
extension is 3-4658.

Sincerely,

Sherry Buckley
Tax Correspondence