Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter O - STATE AND LOCAL SALES AND USE TAXES › Section 3.367 - Timber Items (Tax Code, Sectionand Section 151.317)

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
				  The following words and terms, when used in this section, shall have the
				  following meanings, unless the context clearly indicates otherwise.
(1) Equipment--An apparatus, device, hand
				  tool, simple machine, or expendable supply item. Examples include axes,
				  handsaws, ropes, tree measurement devices, harnesses for tree climbing, eye
				  protection goggles, ear protection devices, components of above-ground
				  sprinkler systems or underground sprinkler systems, boards or mats used for
				  access to commercial timber sites, and expendable supplies such as lubricants,
				  solvents, and rags. The term "equipment" includes repair, replacement parts,
				  and accessories for equipment. A computer or software program may qualify, if
				  it is used exclusively in the production of timber. For example, a computer
				  used exclusively to measure or track the growth of the trees to determine
				  harvest time is a timber item. However, computers and software used in business
				  accounting, bookkeeping, word processing, preparation of payrolls and employee
				  evaluations, or other non-production activities are not timber items. The term
				  does not include furniture, office supplies, or office equipment.
(2) Machinery--A powered-operated machine.
				  Examples include chain saws, chippers, machinery used to drill holes for
				  planting, machinery used to fertilize, harvesters, slashers, merchandisers
				  including total merchandising systems, debarkers, delimbers, grapples, log
				  stackers, feller bunchers, loaders including knuckleboom loaders, skidders,
				  tractors, bulldozers, welding machines, compressors, and generators. The term
				  "machinery" includes repair, replacement parts, and accessories for machinery.
				  The term does not include motor vehicles or repair, replacement parts, or
				  accessories for motor vehicles except for motor vehicles that qualify as timber
				  machines and timber trailers.
(3)
				  Original producer--a person who:
(A) harvests
				  timber that the person owns and continues to own until the timber is processed,
				  packed, or marketed; or
(B) is the
				  grower of the timber, exercises predominant operational control over the growth
				  of the timber, and bears the risk of loss of investment in the
				  timber.
(4) Pollution
				  control equipment--Machinery and equipment that are used by an original
				  producer to control pollution that results from the processing, packing, or
				  marketing of timber products by the original producer.
(5) Production of timber--Activities to
				  prepare the production site or to plant, cultivate, or harvest commercial
				  timber that will be sold in the regular course of business. The term includes
				  construction, repair, and maintenance of private roads and lanes exclusively
				  used for access to commercial timber sites. Activities at a harvest site to cut
				  down commercial timber, debark, delimb, chip, slash, and to prepare and load
				  harvested timber qualify as the production of timber but are not manufacturing
				  operations as described in subsection (f) of this section. The use of a timber
				  trailer to haul the harvested logs or chips from the harvest site for delivery
				  to a saw mill also qualifies as the production of timber. Transportation of
				  timber products from a location other than a commercial timber harvest site
				  does not qualify.
(6) Timber
				  machine--A self-propelled motor vehicle specially adapted to perform a
				  specialized function for use primarily in timber operations. Timber machine
				  does not include any self-propelled motor vehicle specifically designed or
				  adapted for the primary purpose of transporting timber or timber products
				  including a self-propelled motor vehicle designed to transport cargo and
				  adapted with a cargo loading device. For information concerning the exemption
				  of a timber machine from motor vehicle sales tax under Chapter 152 of the Tax
				  Code, see §
											3.72
				  of this title (relating to Farm Machines, Timber Machines and
				  Trailers).
(7) Timber trailer--A
				  trailer or semitrailer designed for and used primarily in a timber operation.
				  For information concerning the exemption of a timber trailer from motor vehicle
				  sales tax under Chapter 152 of the Tax Code, see §
											3.72
				  of this title (relating to Farm Machines, Timber Machines and
				  Trailers).