The Texas 01-924 form is an Agricultural Sales and Use Tax Exemption Certificate that allows commercial agricultural producers to claim exemption from Texas sales and use tax on qualifying agricultural items. This form is essential for those purchasing items exclusively for agricultural production, ensuring compliance with state tax regulations. To get started with your exemption claim, fill out the form by clicking the button below.
The Texas 01-924 form, officially known as the Agricultural Sales and Use Tax Exemption Certificate, serves as a vital tool for commercial agricultural producers in Texas. This form allows eligible individuals and businesses to claim an exemption from sales and use tax when purchasing, leasing, or renting certain agricultural items intended solely for the production of agricultural products for sale. However, it's important to note that this exemption does not extend to motor vehicle purchases, including trailers. For those transactions, a different form, the Texas Motor Vehicle Tax Exemption Certificate for Agricultural and Timber Operations (Form 14-319), is required. Additionally, the 01-924 form does not apply to specific items such as horses, livestock, animal feed, and seeds, which are always exempt from sales tax. The form must be filled out accurately, including the purchaser's ag/timber number, to ensure its validity. Retailers are also responsible for accepting this certificate in good faith, provided it is properly completed. Understanding the nuances of this exemption certificate is essential for both buyers and sellers in the agricultural sector, as misuse can lead to significant penalties. Familiarity with qualifying items, proper record-keeping, and compliance with state regulations are crucial for maintaining eligibility for tax exemptions.
01-924 (Rev.4-17/4)
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Texas Agricultural Sales and Use Tax Exemption Certificate
Commercial agricultural producers must use this form to claim exemption from Texas sales and use tax when buying, leasing or renting qualifying agricultural items they will use exclusively in the production of agricultural products for sale.
You cannot use this form to claim exemption from motor vehicle tax when buying motor vehicles, including trailers. To claim motor vehicle tax exemption, you must give a properly completed Texas Motor Vehicle Tax Exemption Certificate for Agricultural and Timber Operations (Form 14-319) to the vehicle’s seller or dealer. You must also claim the exemption on the Application for Texas Title (Form 130-U) when titling or registering the vehicle with the local County Tax Assessor-Collector.
This form is not required when purchasing the following types of agricultural items:
•horses, mules and work animals commonly used in agricultural production;
•animal life, the products of which ordinarily constitute food for human consumption, such as cows, goats, sheep, chickens, turkeys and pigs;
•feed for farm and ranch animals, including oats, corn, chicken scratch and hay; and
•seeds and annual plants, the products of which are commonly recognized as food for humans or animals (such as corn, oats and soybeans) or are usually only raised to be sold in the regular course of business (such as cotton seed).
All other purchases of agricultural items require this properly completed form to claim a sales tax exemption. See the back of this form for examples of exempt and taxable items.
Name of retailer
Address (Street and number, P.O. Box or route number)
City, State, ZIP code
Proper use of this certificate
Purchasers - You can only use this certificate for items you purchase for exclusive use in an exempt manner. You should be familiar with qualifying items. Any non-agricultural or personal use disqualifies the purchase from exemption. See the back of this form for examples of exempt and taxable items.
Retailers - You can accept this certificate in good faith at the time of sale if it is properly completed with an ag/timber number and expiration date. You can also accept it as a blanket certificate covering all sales made during the time this certificate is valid on qualifying items that can reasonably be used to produce agriculture products for sale.
Name of purchaser
Phone (Area code and number)
Ag/Timber number
Name of person to whom number is registered, if different than purchaser
This exemption certificate expires on Dec. 31, 2 0
I understand that I am required to keep records to verify eligibility for the exemption(s) claimed and that I will be required to pay sales or use tax on purchases that do not qualify for the exemption(s), in addition to any applicable interest and penalties.
I understand that it is a criminal offense to issue an exemption certificate to the seller for taxable items that I know will be used in a manner that does not qualify for the exemptions found in Tax Code Section 151.316. The offense may range from a Class C misdemeanor to a felony of the second degree.
Purchaser's signature
Purchaser's name (print or type)
Date
This certificate should be given to the retailer. Do not send the completed certificate to the Comptroller of Public Accounts.
Form 01-924 (Back)(Rev.4-17/4)
Always Exempt
These items are always exempt and do not require an exemption certificate or an ag/timber number.
•Horses, mules and work animals commonly used in agricultural production;
•Animal life, the products of which ordinarily constitute food for human consumption, such as cattle, goats, sheep, chickens, turkeys and hogs;
•Feed such as oats, hay, chicken scratch, wild bird seed and deer corn for livestock and wild game (pet food is not exempt); and
•Seeds and annual plants, the products of which are commonly recognized as food for humans or animals, such as corn, oats and soybeans or for fiber, such as cotton seed.
Exempt
Here are examples of items that are exempt from sales tax when used exclusively on a farm or ranch to produce agricultural products for sale and pur- chased by a person with a current ag/timber number.
Air tanks
Augers
Bale transportation equipment
Baler twine
Baler wrap
Balers
Binders
Branding irons
Brush hogs Bulk milk coolers Bulk milk tanks
Calf weaners and feeders
Cattle currying and oiling machines
Cattle feeders
Chain saws used for clearing fence lines or pruning orchards
Choppers
Combines
Conveyors
Corn pickers
Corral panels
Cotton pickers, strippers
Crawlers – tractors
Crushers
Cultipackers
Discs
Drags
Dryers
Dusters
Egg handling equipment
Ensilage cutters
Farm machinery and repair or replacement parts
Farm tractors Farm wagons
Farrowing houses (portable and crates)
Feed carts
Feed grinders
Feeders
Fertilizer
Fertilizer distributors
Floats for water troughs
Foggers
Forage boxes
Forage harvesters
Fruit graters
Fruit harvesters
Grain binders
Grain bins
Grain drills
Grain handling equipment
Greases, lubricants and oils for qualifying farm machinery and equipment
Harrows
Head gates
Hoists
Husking machines
Hydraulic fluid
Hydro-coolers Implements of husbandry Incubators
Irrigation equipment
Manure handling equipment Manure spreaders Milking equipment
Mowers (hay and rotary blade)
Pesticides
Pickers
Planters Poultry feeders
Poultry house equipment
Pruning equipment
Rollbar equipment Rollers
Root vegetable harvesters
Rotary hoes
Salt stands
Seed cleaners
Shellers
Silo unloaders
Soilmovers used to grade farmland
Sorters
Sowers
Sprayers
Spreaders
Squeeze chutes
Stalls
Stanchions
Subsoilers
Telecommunications services used to navigate farm machinery and equipment*
Threshing machines Tillers
Tires for exempt equipment Troughs, feed and water
Vacuum coolers
Vegetable graders
Vegetable washers
Vegetable waxers
* As of Sept. 1, 2015, telecommunications services used to navigate farm machinery and equipment are exempt.
Taxable
These items DO NOT qualify for sales and use tax exemption for agricultural production.
•Automotive parts, such as tires, for vehicles licensed for highway use, even if the vehicle has farm plates
•Clothing, including work clothing, safety apparel and shoes
•Computers and computer software used for any purposes other than agricultural production
•Furniture, home furnishings and housewares
•Golf carts, dirt bikes, dune buggies and go-carts
•Guns, ammunition, traps and similar items
*See www.comptroller.texas.gov/taxes/ag-timber/.
•Materials used to construct roads or buildings used for shelter, housing, storage or work space (examples include general storage barns, sheds or shelters)
•Motor vehicles and trailers*
•Pet food
•Taxable services such as nonresidential real property repairs or remodeling, security services, and waste removal
Tax Help: www.comptroller.texas.gov/taxes/ = Window on State Government: www.comptroller.texas.gov
Tax Assistance: 1-800-252-5555
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Filling out the Texas 01-924 form is straightforward. Follow these steps to ensure you complete it correctly. This form is essential for claiming a sales tax exemption on qualifying agricultural items. Make sure to have all necessary information ready before you begin.
Once you have completed the form, give it to the retailer. Do not send it to the Comptroller of Public Accounts. Ensure you keep a copy for your records, as it may be needed for verification in the future.
The Texas 01-924 form, also known as the Texas Agricultural Sales and Use Tax Exemption Certificate, allows commercial agricultural producers to claim exemption from sales and use tax when purchasing qualifying agricultural items. This form is specifically for items that will be used exclusively in the production of agricultural products for sale.
Only commercial agricultural producers who hold a valid ag/timber number can use this form. It is essential that the items purchased are intended solely for agricultural production. Personal or non-agricultural use of the items will disqualify the exemption.
Items exempt from sales tax when purchased using the Texas 01-924 form include, but are not limited to:
However, certain items like horses, mules, and specific animal life do not require this form for exemption.
Items that do not qualify for exemption include:
These items are explicitly excluded from tax exemption, regardless of their use in an agricultural context.
The form must be filled out with the purchaser's name, address, ag/timber number, and signature. It is crucial to ensure that all information is accurate and complete. The retailer should also verify that the form includes an expiration date and is properly signed before accepting it.
Issuing the Texas 01-924 form for taxable items can lead to serious consequences. If you knowingly use the form for items that do not qualify, you may face penalties ranging from a Class C misdemeanor to a felony of the second degree. It is vital to understand the rules governing the use of this certificate.
Yes, the Texas 01-924 form has an expiration date, which is typically December 31 of the year it is issued. It is essential to keep track of this date and renew the certificate as needed to maintain eligibility for tax exemptions.
The completed Texas 01-924 form should be given directly to the retailer at the time of purchase. Do not send the form to the Comptroller of Public Accounts. Retain a copy for your records to verify eligibility for the exemption claimed.
Incomplete Information: One common mistake is failing to fill out all required fields. Ensure that every section of the form is completed, including the name and address of both the purchaser and the retailer.
Incorrect Ag/Timber Number: Providing an incorrect or expired ag/timber number can invalidate the exemption. It’s essential to verify that the number is accurate and current before submission.
Misunderstanding Qualifying Items: Many people mistakenly believe that all agricultural items qualify for exemption. Familiarize yourself with which items are exempt and which are taxable to avoid errors.
Using the Certificate for Non-Exempt Purchases: Some individuals incorrectly use this form for items that do not qualify for exemption, such as vehicles or personal items. Always check the guidelines to ensure compliance.
Not Retaining Records: Failing to keep proper records can lead to issues later on. It’s crucial to maintain documentation that verifies eligibility for the exemptions claimed.
Submitting the Form Incorrectly: Some individuals mistakenly send the completed form to the Comptroller of Public Accounts. This form should only be given to the retailer at the time of purchase.
The Texas 01-924 form is essential for agricultural producers to claim exemptions from sales and use tax on qualifying agricultural items. Along with this form, there are several other documents that may be necessary for related transactions. Below is a list of these forms, each with a brief description.
Each of these documents serves a specific purpose in the agricultural tax exemption process. Proper completion and submission of these forms are essential for compliance and to ensure that producers can take advantage of available tax benefits.
The Texas Motor Vehicle Tax Exemption Certificate for Agricultural and Timber Operations (Form 14-319) serves a specific purpose similar to the Texas 01-924 form. Both documents allow agricultural producers to claim tax exemptions, but the 14-319 form is specifically for motor vehicles used in agricultural operations. While the 01-924 form covers a broader range of agricultural items, the 14-319 focuses solely on vehicles, such as trucks and trailers, that are essential for farming activities. Proper completion of the 14-319 is necessary to ensure that the vehicle is exempt from motor vehicle tax when purchased or registered.
The Texas Agricultural Exemption Certificate (Form 01-925) is another document that shares similarities with the Texas 01-924 form. Like the 01-924, this certificate is used by agricultural producers to claim exemptions on purchases. However, the 01-925 is more general and can be used for a wider range of agricultural purchases beyond just sales tax exemptions. Both forms require proper completion and adherence to specific guidelines to ensure that the exemptions are valid and applicable to the items purchased.
The Texas Timber Exemption Certificate (Form 14-320) is also akin to the Texas 01-924 form. This certificate is specifically designed for timber operations, allowing timber producers to claim exemptions on purchases related to timber production. Both forms require the purchaser to have a valid ag/timber number and to use the purchased items exclusively for exempt purposes. While the 01-924 focuses on agricultural products, the 14-320 is tailored for the timber industry, reflecting the unique needs of each sector.
The Texas Agricultural and Timber Registration Application (Form 01-917) complements the Texas 01-924 form by facilitating the registration process for agricultural and timber operations. This application is essential for obtaining an ag/timber number, which is required for both the 01-924 and 14-320 forms. By completing the 01-917, producers can establish their eligibility for tax exemptions, thereby streamlining the process of claiming exemptions on purchases related to their agricultural or timber activities.
The Texas Agricultural Products Sales Tax Exemption Certificate (Form 14-318) is another document that is similar to the Texas 01-924 form. This certificate allows producers to claim sales tax exemptions on specific agricultural products sold to consumers. While the 01-924 focuses on exemptions for purchases made by producers, the 14-318 is aimed at ensuring that the products sold by these producers are exempt from sales tax. Both forms require careful completion and adherence to guidelines to maintain compliance with tax regulations.
Finally, the Texas Sales and Use Tax Resale Certificate (Form 01-339) shares a functional relationship with the Texas 01-924 form. This certificate allows businesses to purchase items for resale without paying sales tax at the time of purchase. Similar to the 01-924, the resale certificate requires proper documentation and is intended for specific use cases. While the 01-924 is focused on agricultural exemptions, the resale certificate serves a broader audience of businesses, emphasizing the importance of correct usage and compliance in both cases.
When filling out the Texas 01-924 form, it is crucial to follow certain guidelines to ensure compliance and avoid issues. Here are ten things you should and shouldn't do:
Misconceptions about the Texas 01 924 form can lead to confusion and potential tax issues. Here are four common misunderstandings:
Filling out the Texas 01-924 form correctly is essential for agricultural producers seeking tax exemptions. Here are some key takeaways to keep in mind:
Understanding these key points can help ensure compliance and maximize the benefits of the Texas 01-924 form.