2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 152 - Taxes on Sale, Rental, and Use of Motor Vehicles › Subchapter E. Exemptions › Section 152.091. Farm or Timber Use

Sec. 152.091.  FARM OR TIMBER USE.  (a)  The taxes imposed by this chapter do not apply to the sale or use of a:
(1)  farm machine, trailer, or semitrailer for use primarily for farming and ranching, including the rearing of poultry, and use in feedlots;  or
(2)  machine, trailer, or semitrailer for use primarily for timber operations.
(b)(1) The taxes imposed by this chapter do not apply to the purchase of a:
(A)  farm machine, trailer, or semitrailer that is to be leased for use primarily for farming and ranching, including the rearing of poultry, and use in feedlots;  or
(B)  machine, trailer, or semitrailer that is to be leased for use primarily for timber operations.
(2)  The exemption provided by this subsection applies only if the person purchasing the machine, trailer, or semitrailer to be leased presents the tax assessor-collector a form prescribed and provided by the comptroller showing:
(A)  the identification of the motor vehicle;
(B)  the name and address of the lessor and the lessee;  and
(C)  verification by the lessee that the machine, trailer, or semitrailer will be used primarily for:
(i)  farming and ranching, including the rearing of poultry, and use in feedlots;  or
(ii)  timber operations.
(3)  If a motor vehicle for which the tax has not been paid ceases to be leased for use primarily for farming and ranching, including the rearing of poultry, and use in feedlots or timber operations, the owner shall notify the comptroller on a form provided by the comptroller and shall pay the sales or use tax on the motor vehicle based on the owner's book value of the motor vehicle.  The tax is imposed at the same percentage rate that is provided by Section 152.021(b).
(b-1)  In addition to the other requirements prescribed by this section, to claim an exemption provided by Subsection (a) or (b) the person purchasing, using, or leasing the machine, trailer, or semitrailer must provide an exemption certificate with a registration number issued by the comptroller under Section 151.1551.
(c)  The taxes imposed by this chapter do not apply to the rental of a farm machine, a trailer, or a semitrailer for use primarily for farming and ranching, including the rearing of poultry, and use in feedlots, or a machine, a trailer, or a semitrailer for use primarily for timber operations.  The tax that would have been remitted on gross rental receipts without this exemption shall be deemed to have been remitted for the purpose of calculating the minimum gross rental receipts imposed by Section 152.026. The exemption provided by this subsection applies only if the owner of the motor vehicle obtains in good faith an exemption certificate from the person to whom the vehicle is being rented.  To claim the exemption, the person renting the vehicle must also provide on the certificate a registration number issued by the comptroller under Section 151.1551.
(d)  For purposes of this section, a machine is used "primarily for timber operations" if the machine is a self-propelled motor vehicle that is specially adapted to perform a specialized function in the production of timber, including land preparation, planting, maintenance, and gathering of trees commonly grown for commercial timber.  The term does not include a self- propelled motor vehicle used to transport timber or timber products.
Added by Acts 1983, 68th Leg., p. 3211, ch. 553, Sec. 3, eff. Sept. 1, 1983.  Amended by Acts 1999, 76th Leg., ch. 631, Sec. 16, eff. Oct. 1, 2001;  Acts 2001, 77th Leg., ch. 1263, Sec. 29, eff. Oct. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 225 (H.B. 268), Sec. 7, eff. September 1, 2011.