Farm Use Exemption
Many customers purchasing an ATV or UTV want to take advantage of the Sales Tax exemption that the state offers for equipment used for farming. Through the end of 2011, we are happy to honor the farm use exemption, we do require one of two pieces of documentation to back up the exemption.
- Copy of a Schedule F filed within the last 3 years
- A dyed diesel fuel permit number in the name or address of the purchaser
Either one of the above items will satisfy comptroller requirements for proof of eligibility. By providing one of the above documents you also greatly decrease the chance of enduring a personal tax audit that may otherwise be triggered by purchasing a vehicle and claiming a sales tax exemption. Over the last three years the State has aggressively gone after individuals who abuse this exemption and so we work hard to help our customers avoid these issues.
Beginning on January 1st, 2012, all customers wanting to take advantage of the State Tax exemption for Farm Use must provide the dealership with an Agricultural Exemption Number.
Do I need a registration number?
Beginning Jan. 1, 2012, if you claim an exemption from sales tax on the purchase of certain items used in the production of agricultural and timber products, yes. In the Texas 82nd Regular Legislative Session, a bill was passed (House Bill 268) that requires a person claiming an exemption from sales tax on such purchases must provide a registration number issued by the Comptroller of Public Accounts on the exemption certificate issued to the seller. The Comptroller will provide a registration number to you upon your successful application for registration.
What types of items are subject to this requirement?
A registration number will be required in order to claim an exemption from Texas sales and use tax when purchasing the following goods and services:
- fertilizers, fungicides, insecticides, herbicides, defoliants and desiccants used exclusively in the production of timber for sale, or on a commercial farm or ranch in the production of food or other agricultural products for sale;
- machinery and equipment (including component parts) used exclusively in the production of timber, or on a commercial farm or ranch in the production of food or other agricultural products for sale or the building or maintaining of roads and water supplies;
- machinery and equipment used by an original producer for packing and processing agricultural or timber products;
- machinery and equipment used exclusively in an agricultural aircraft operation, as defined by 14 C.F.R. Section 137.3 (crop dusting);
- tangible personal property incorporated into a structure used for poultry carcass disposal;
- components of irrigation systems used in the production of food and other agricultural and timber products for sale;
- seedlings used in the production of timber for sale;
- electricity used in agriculture or timber operations;
- services performed on exempt tangible personal property identified in this list; and,
- farm, timber and off-road motor vehicles.
What types of items are not subject to this requirement?
A registration number is not required for 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 cattle, hogs, goats, sheep, chickens and turkeys;
- feed, including oats, corn, chicken scratch and hay, for farm and ranch animals and wildlife;
- feed for animals held for sale in the regular course of business;
- seeds and annual plants, the products of which are commonly recognized as food for humans or animals, or are usually only raised to be sold in the regular course of business such as corn, oats soybeans and cotton seed; and,
- ice used exclusively by commercial fishing boats in storing aquatic species including, but not limited to, shrimp and other crustaceans, finfish, mollusks and similar creatures.
Who is eligible for a registration number?
A person, including a non-Texas resident, engaged in the production of agricultural or timber products for sale in the regular course of business is eligible for a registration number that can be used to claim an exemption from Texas sales tax on the purchase of qualifying items included for eligibility for registration numbers are persons in these groups:
- farmers and ranchers who raise agricultural products to sell to others
- persons engaged in aquaculture and apiculture; (i.e. commercial fish farms or bee keepers)
- custom harvesters;
- persons engaged in agricultural aircraft operations, as defined by 14 C.F.R. Section 137.3 (crop dusting);
- commercial nurseries engaged in fostering growth of plants for sale (i.e., growing stock from seed or cuttings, replanting seedlings in larger containers); and, timber producers, including contract lumberjacks.
Who is NOT eligible for a registration number?
A person who is not engaged in the production of agricultural or timber products for sale is not eligible for a registration number and may not claim an exemption from tax when purchasing the items noted above. Examples of the types of activities that do not qualify for exemption include home gardening; horse racing; commercial nurseries and florists who only store or maintain plants prior to sale; wildlife management and/or land conservation; maintenance or operation of hunting and fishing leases; horse boarding; trail rides; commercial fishing; dog breeding and pet kennels.
How do I apply for a registration number?
Visit the Texas Agricultural and time Exemption website at http://www.window.state.tx.us/taxinfo/agriculture/get_ready_texas.html
Does every person employed by a farm, ranch or timber operation need their own registration number?
The primary owner or operator of the farm, ranch or timber operation may obtain a number that can then be used by any person authorized by the registrant. For example, if three different family members operate a family farm or ranch, one member of the family can apply for one registration number for the farm that all three can then use when making qualifying purchases. Similarly, a large corporate agricultural or timber operation that employs multiple personnel may obtain one number that can be used by all authorized employees when making qualifying purchases.
It is important to note, however, that the person to whom the registration number is issued is responsible for ensuring that all items purchased exempt from tax under the permit holder's registration number will be used in a qualifying, exempt manner.
In order to ride on public lands in Texas (or any land developed by a state grant) you need to have an OHV decal on your vehicle (this includes ATV's, UTV's, Dirt Bikes, Scooters, and Street Legal Motorcycles). Decals can be obtained at Woods Cycle Country.
Whether you ride dirt bikes, all-terrain vehicles, or a 4x4 truck, an off-highway vehicle is a great way to spend time together outdoors with your family and friends. There are many exciting sites in Texas to ride and new sites are always opening. Many sites also offer hiking and camping which makes it easy to take the whole family along for an outdoors adventure.
The Texas Off-Highway Vehicles (OHV) Program is a new program to help make it easier to find places to ride safely and to encourage more responsible use of the outdoors. The program is also designed to provide funding to develop more recreational areas for OHV users.
An OHV decal is now required by law for all individuals operating an OHV in Texas in an area that is located on public land, or on lands that have been purchased with Texas Parks & Wildlife Department OHV grants.
- What is the cost of the OHV decal? Currently the annual decal fee is $8.00 for the period of September 1st to August 31st
- How long are the OHV decals valid for? The OHV program year is based on the State of Texas fiscal year which begins on September 1 and runs until August 31 of the following year.
- Is the cost of the OHV decals prorated if the decals are purchased after the beginning of the program year? No, the decals are not prorated based on the time left in the program year.
- Can I buy a replacement OHV decal if mine is lost or destroyed? No, replacements for lost or destroyed decals will not be offered at this time. You can purchase another OHV decal to replace ones that are lost or destroyed.
- Where can I buy the OHV decal? Decals can be purchased directly from Texas Parks & Wildlife or any cooperating vendors. Please see our where to buy page for more information.
- What types of vehicles are required to have a OHV decal? Non-street legal motorcycles, all terrain vehicles (ATV) and non-street legal four-wheel drive vehicles are required to have the OHV decal when trail riding on public lands in Texas. Use of street legal OHV's does not require the Texas OHV decal no matter where they are used in Texas.
- What types of vehicles do not need the decal? Street legal motorcycles, full sized vehicles, full sized 2 wheel drive vehicles, and 2 wheel drive vehicles which use a bench seat or other up-right, backed seats, instead of a saddle, do not need an OHV decal when riding on public land. Use of OHV's on private land does not require the Texas OHV decal.
- Where do I need the Texas OHV decal when trail riding? This law applies to all public lands in Texas including all municipal, county, state or federal lands where OHV recreation is approved and legal.
- Do I need an OHV decal when trail riding on private lands? No, unless the land was purchased for use as an OHV park or at an existing OHV venue that made facility improvements using National Recreational Trails Program grant funds or Texas OHV program grant funds.
- Will my Texas OHV decal be honored in other states? Currently, an informal reciprocity agreement exists between some states which have state OHV programs. If you have a current Texas OHV decal and want to use your OHV in another state which has an OHV decal program, you should check with that State's OHV program to obtain accurate and up to date information related to the requirements of their OHV decal program before trail riding in OHV legal areas.
- Will OHV decals from other states be honored in Texas? OHV decals are reciprocal between states which have OHV decal programs. If a resident of another state wants to trail ride with their OHV on public lands, where OHV recreation is legal in Texas, they will not be required to purchase a Texas OHV decal.
- Does possession of an OHV decal give me legal access and approval to use OHV's on any public land in Texas? No. Possession of a Texas OHV decal does not allow legal OHV access to public lands where legal access does not currently exist.
- Is there a penalty or fine for not possessing an OHV decal when & where it is required? Failure to comply with the provisions of this law constitutes a Class C misdemeanor and could result in the OHV operator being issued a citation.. Fines for this offense range from $25 to $500.
More information about the OHV decals is available on the TPWD website http://www.tpwd.state.tx.us/spdest/ohv/
Who must be certified to operate a vessel alone?
In Texas a person cannot operate a windblown vessel over 14 feet in length, a motorboat with more than 15 horsepower, or personal watercraft unless he/she:
- was born on or after September 1, 1993 and has passed a boater education class or equivalency examination prescribed by the department.
- is 18 years of age and can lawfully operate the motorboat and is on board the motor boat when underway.
- is at least 13 years of age and have successfully completed a boater education course approved by the Department.
Who can operate a PWC?
NOTE: Children under 13 are specifically prohibited from operating a PWC unless accompanied on board by a person at least 18 years of age.
To operate a PWC, the operator must meet one of the following:
- Born on or after September 1, 1993 and passed a boater education class or equivalency examination prescribed by the Texas Parks and Wildlife Department, or
- born before September 1, 1993, or
- Persons requiring boater education who have not competed it must be accompanied by a person 18 years of age (who can legalla operate) or older, or
- At least 13 years of age and have passed a boater education course or equivalency examination prescribed by the department.
For more information please utilize the Texas Parks and Wildlife's boater education website located at http://www.tpwd.state.tx.us/faq/learning/boater_education/
ATV Safety Alert
Woods Cycle Country values your and your children's safety. Please review the following safety alert which contains important ATV age limitations.
The Consumer Product Safety Commission has concluded that ALL-TERRAIN VEHICLES (ATVs) may present a risk of DEATH or SEVERE INJURY in certain circumstances. While accidents may occur for many reasons:
*** Over 2,753 people, including many children, have died in accidents associated with ATVs since 2000.
*** Many people have become severely paralyzed or suffered severe internal injuries as a result of accidents associated with ATVs.
Every month thousands of people are treated in hospital emergency rooms for injuries received while riding an ATV. You should be aware that AN ATV IS NOT A TOY and can BE HAZARDOUS TO OPERATE. An ATV handles differently from other vehicles, including motorcycles and cars. A collision or rollover can occur quickly, even during routine maneuvers such as turning and driving on hills and over obstacles, if you fail to take proper precautions.
TO AVOID DEATH OR SEVERE PERSONAL INJURY:
ALWAYS read the owner's manual carefully and follow the operating procedures described. Pay special attention to the warnings contained in the manual and all labels on the machine. NEVER operate an ATV without proper instruction. Take a training course. ALWAYS follow these age recommendations
- A child under 6 years old should never operate an ATV with an engine size 50cc or greater
- A child under 12 years old should never operate an ATV with an engine size 70cc or greater
- A child under 16 years old should never operate an ATV with an engine size greater than 90cc
NEVER allow a child under the age of 16 to operate an ATV without adult supervision. Children need to be observed carefully because not all children have the strength, size, skills, or judgment needed to operate an ATV safely.
NEVER carry a passenger on an ATV. Carrying a passenger may upset the balance of the ATV and may cause it to go out of control.
NEVER operate an ATV on pavement. The vehicle is not designed to be used on paved surfaces and may be difficult to control.
NEVER operate an ATV without an approved motorcycle helmet, eye-protection, boots, gloves, long pants and a long sleeved shirt or jacket.
NEVER operate an ATV on a public road, even a dirt or gravel one, because you may not be able to avoid colliding with other vehicles. Also, operating an ATV on a public road may be against the law.
NEVER consume alcohol or drugs before or while operating and ATV.
NEVER operate an ATV at excessive speeds. Go at a speed, which is proper for the terrain, visibility conditions, and your experience.
NEVER attempt to do wheelies, jumps or other stunts.
ALWAYS be careful when operating an ATV, especially when approaching hills, turns, and obstacles and when operating on unfamiliar or rough terrain.
NEVER lend your ATV to anyone who has not taken a safety-training course or has not been driving an ATV for at least a year or is under 18 years old.
Anyone who purchased a new ATV after December 30, 1986, and everyone in the purchaser's immediate family who is within the recommended age group for the ATV purchase, is entitled to take a training course at no additional charge. Others can take the training course for a small fee. Ask an authorized dealer for details or call (800) 887-2887 for training information.
For more information about ATV safety, call the Consumer Product Safety Commission at (800) 638-2272 or the ATV distributors' safety hotline at (800) 852-5344.