Is land surveying performed on a farm or ranch exempt from Texas sales tax as an agricultural service?

Plain-English Summary

The Texas Comptroller's Tax Administration Division answered a taxpayer's question: are surveying services performed on agricultural land or facilities subject to sales tax? The answer is yes, if the surveying itself is "taxable surveying" under Texas law.

Texas taxes surveying services as real property services. The letter defines taxable surveying broadly: activities that determine or confirm real property boundaries, or determine or confirm the location of structures or improvements relative to those boundaries, using relevant law, research, measurement, analysis, computation, mapping, and land description. Examples the letter gives include boundary recovery, residential surveying, lot surveying, title surveying, as-built surveying, and right-of-way surveying. It does not include work performed after the taxable survey is done to search the area for archaeological or historic items.

Critically, the letter confirms that neither the sales tax statute nor 34 Tex. Admin. Code Rule 3.296 (the rule governing agricultural exemptions) exempts surveying performed for agricultural purposes. In other words, putting a fence line survey on a farm or ranch does not turn a taxable surveying service into an exempt agricultural service — the location or purpose (agricultural vs. commercial vs. residential) does not change the taxability of surveying that meets the taxable definition.

The letter then notes that certain surveying services are not taxable, and points the taxpayer to a separate Comptroller rule addressing surveying (and other real property) services, plus a related bulletin, for the details on which surveying activities fall outside the taxable definition. The letter itself does not spell out those categories beyond what is described above — it defers to that other rule and bulletin for specifics.

What This Means For You

Farmers, ranchers, and agribusiness owners: Do not assume that a survey purchased for farm or ranch use is automatically tax-exempt just because agricultural land, equipment, and many farm inputs enjoy sales tax exemptions elsewhere in Texas law. Rule 3.296's agricultural exemptions are specific and do not extend to surveying services. If the survey work fits the taxable definition (boundary determination/confirmation, or locating structures relative to boundaries), you owe sales tax on it regardless of the property's agricultural use.

Surveyors and survey firms: You should charge sales tax on surveying work that determines or confirms property boundaries or structure locations relative to boundaries, even when the job is on a farm or ranch and even when the client asks about an agricultural exemption. Only surveying activities that fall outside that taxable definition (per the Comptroller's real property services rule and related guidance) may be nontaxable — confirm the specific category before treating any survey as exempt.

Accountants and tax professionals: This letter is a useful, narrow answer to "does the ag exemption cover surveying?" (no), but it is not a comprehensive list of nontaxable surveying services. For that, consult the Comptroller's surveying/real property services rule (today, 34 Tex. Admin. Code Rule 3.276, Surveying Services, and Rule 3.356, Real Property Service) and any current Comptroller publications, since this 1994 letter predates the modern surveying-specific rule and may not reflect current guidance.

Q&A

Q: If I have a survey done on my farm to locate a new fence line, is it exempt from sales tax because it's agricultural?
A: No. If the survey determines or confirms property boundaries or the location of a structure relative to boundaries, it is a taxable surveying service. The agricultural exemption rule (34 Tex. Admin. Code Rule 3.296) does not exempt surveying, regardless of where the survey takes place.

Q: Are there any surveying services that are not taxable?
A: Yes — the letter states that certain surveying services are not taxable, but directs the taxpayer to a separate Comptroller rule on surveying (and other real property) services and an accompanying bulletin for which specific activities qualify, rather than listing them in this letter.

Q: Does searching a surveyed area for archaeological or historic items count as taxable surveying?
A: No. The letter specifically excludes from taxable surveying any activities performed after the taxable survey is complete to search the area for items of archaeological or historic significance.

Q: Can I rely on this letter for my own surveying business?
A: Only with caution. STAR letters are binding only on the specific taxpayer to whom they were issued, and this letter is from 1994 — it may not reflect current Comptroller policy, especially since the Comptroller adopted a dedicated surveying services rule (Rule 3.276) in 2022. Confirm current treatment with a Texas tax professional or the Comptroller's current publications before relying on it.

Citations

Statutes and rules referenced or implicated:

• 34 Tex. Admin. Code Rule 3.296 (Agricultural, Timber, and Off-Road Vehicles) — the agricultural exemption rule the letter confirms does not cover surveying services.
• 34 Tex. Admin. Code Rule 3.356 (Real Property Service) — governs taxable real property services generally, including surveying, as referenced by the Comptroller's separate rule and bulletin mentioned in the letter.
• See also 34 Tex. Admin. Code Rule 3.276 (Surveying Services), adopted 2022, which postdates this letter but now codifies the taxable/nontaxable surveying distinction in detail.

Subject

Surveying Service — On Agricultural Land Or Facilities (Where To Put Fence On Farm/Ranch)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9407L1311E13

Original ruling text

July 25, 2994

Dear **:

Thank you for your letter asking, "Are surveying services which
pertain toagricultural land and facilities subject to sales tax?"

I have enclosed a copy of administrative section 3.296 regarding
agricultural exemptions. Neither the statute nor this rule exempts
surveying services performed for agricultural purposes.

Taxable surveying services are:

"Activities performed to determine or confirm the boundaries of real
property, or to determine or confirm the location of structures or
other improvements in relation to the boundaries of the property by
the use of relevant elements of law, research, measurement, analysis,
computation, mapping and land description. Examples include, but are
not limited to, boundary recovery, residential surveying, lot
surveying, title surveying, as-built title surveying, and right-of-way
surveying. The term does not include activities performed after taxable
surveying has been completed to search the surveyed area for items of
archaeological or historic significance."

If the services being performed are included as taxable surveying
services, the fact that they are performed on agricultural land or
facilities does not change the taxability. An exemption is not provided.

However, certain surveying services are not taxable. I have enclosed
the administrative rule relating to surveying (and other real property)
services along with a copy of the bulletin about surveying services.

You may also write to Tax Administration Division, Comptroller of Public
Accounts.

Sincerely,

Tax Administration Division

NOTE: Previous Accession Number 9407500L