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Agriculture Today


Exemption for leasers of grazing land




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November 23, 2011 | 2,507 views | Post a comment

Some members of the ag industry who have applied for the new agriculture sales-tax exemption, which will go into effect Sunday, Jan. 1, are being denied due to not meeting the criteria to obtain the sales-tax exemption.

The sales-tax exemption form has caused some confusion to landowners who choose to lease their property for grazing, according to an Oct. 31 Independent Cattlemen’s Association of Texas (ICA) update.

One of the ag classifications is written as “raise and sell cattle.” The ICA explains, “Obviously, if you lease your pasture for the grazing of livestock you do not ‘sell’ cattle.”

After a lengthy discussion with ICA and other agriculture groups, the Texas Comptroller’s Office has decided that a landowner who leases their property for the grazing of cattle is actually selling the grass to the person owning the cattle. Therefore, landowners leasing their property for livestock grazing should mark the box “I raise and sell hay or grasses.”

Those needing a sales-tax exemption form may obtain the form from the Texas Comptroller’s Office by visiting GetReadyTexas.org. Online applicants will receive a registration number immediately.

If you prefer, you may download a paper application form from the website or call 1-800-252-5555 to receive a form by mail.

The forms are also available at the Wilson County office of the Texas AgriLife Extension Service, located in the basement of the Wilson County Courthouse in Floresville.
 

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