The Texas 01 924 form is an Agricultural Sales and Use Tax Exemption Certificate. It allows commercial agricultural producers to claim exemption from Texas sales and use tax when purchasing qualifying agricultural items exclusively for production purposes. Understanding how to properly complete and use this form is essential for maintaining compliance and maximizing your tax benefits.
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When filling out the Texas 01-924 form, keep the following guidelines in mind:
Conversely, avoid these common mistakes:
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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Massage Health History Form - The form outlines your obligations to both Texas and the originating authority regarding your license.
Request Birth Certificate Texas - Questions regarding the application can be directed to Vital Statistics for clarification.
The Texas 01-924 form is a crucial document for agricultural producers seeking to claim exemptions from sales and use tax on qualifying purchases. However, it is often accompanied by other important forms and documents that help streamline the exemption process and ensure compliance with state regulations. Below are some of the key documents that are frequently used alongside the Texas 01-924 form.
Understanding these forms and their purposes can greatly assist agricultural producers in navigating the complexities of tax exemptions in Texas. By ensuring that all necessary documentation is completed and submitted correctly, producers can focus on their agricultural operations without the burden of tax-related issues.
When filling out the Texas 01-924 form, individuals often make several common mistakes that can jeopardize their eligibility for a sales tax exemption. One significant error is failing to provide a valid Ag/Timber number. This number is essential for verifying that the purchaser is indeed a qualified agricultural producer. Without it, the exemption cannot be claimed, leading to unnecessary tax liabilities.
Another frequent mistake is misunderstanding the scope of items that qualify for exemption. Many people mistakenly believe that all agricultural-related purchases are exempt. However, items such as automotive parts and clothing do not qualify. It is crucial to review the list of exempt and taxable items carefully to avoid claims that will ultimately be denied.
Inaccurate completion of the purchaser's information is also a common issue. Errors in the name, address, or phone number can lead to complications when the form is processed. Ensuring that all personal details are correct is vital for maintaining the integrity of the exemption claim.
Moreover, some individuals neglect to sign and date the form. The purchaser's signature serves as an acknowledgment of understanding the conditions of the exemption. Without this signature, the form is incomplete and cannot be accepted by the retailer.
Another mistake involves the misuse of the exemption certificate. Some purchasers attempt to use the form for items that will not be used exclusively in agricultural production. This misuse can result in penalties and interest on unpaid taxes. It is essential to understand the limitations of the exemption and to use the certificate only for qualifying purchases.
Lastly, individuals often fail to keep adequate records to support their claims. The Texas Tax Code requires purchasers to maintain documentation that verifies eligibility for the exemptions claimed. Without proper records, individuals may face challenges in defending their exemption claims during audits. Keeping detailed records ensures compliance and protects against potential legal issues.
This form is specifically for claiming exemptions on certain agricultural items. It cannot be used for all agricultural purchases, especially not for items like motor vehicles.
You must include your ag/timber number and ensure the form is properly completed. This information verifies your eligibility for the exemption.
Only certain items qualify for exemption. Items like clothing, automotive parts, and motor vehicles are not exempt under this form.
This form is strictly for items used exclusively in agricultural production for sale. Any personal use disqualifies the exemption.
The Texas 01-924 form has an expiration date. You must be aware of this date and renew your certificate as needed.
Do not send the form to the Comptroller of Public Accounts. It should be given directly to the retailer at the time of purchase.
Only items used exclusively for agricultural production qualify. Always check the specific guidelines to ensure eligibility.
Retailers must accept the form in good faith, but it must be properly filled out with the necessary information to be valid.
It is essential to maintain records to verify your eligibility for the exemptions claimed. This can protect you in case of an audit.
Issuing a certificate for taxable items can lead to serious consequences, including criminal charges. It is vital to understand the rules to avoid penalties.
Understanding the Texas 01-924 Form is essential for agricultural producers looking to claim sales tax exemptions. Here are some key takeaways:
Filling out the Texas 01-924 form is a straightforward process that allows agricultural producers to claim a sales tax exemption for qualifying purchases. After completing the form, it should be presented to the retailer at the time of purchase. It is important to ensure that all information is accurate and that the items purchased qualify for the exemption.