Texas Hunting Forum: Decent Corn Prices

Am I reading this right? I also paid taxes on my food plot seeds and I think this is saying that as long as it is for wildlife consumption that it is tax exempt without an exemption certificate, same with corn.

Texas Administrative Code
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TITLE 34 PUBLIC FINANCE
PART 1 COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3 TAX ADMINISTRATION
SUBCHAPTER O STATE SALES AND USE TAX
RULE §3.296 Agriculture, Animal Life, Feed, Seed, Plants, and Fertilizer

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(a) Sales tax is not due on the receipts from sales of, and the storage, use or consumption of, the following:

(1) Horses, mules, work animals, and any form of animal life of a kind the products of which ordinarily constitute food for human consumption.

(A) Sales tax is not due on the sale, lease, or rental of horses and mules except when sold, leased, or rented as a part of an amusement service.

(B) The term "work animals" shall include any animal exclusively used in the following:

(i) The production of food for human consumption or other agricultural products held for sale in the regular course of business. Examples: plow animals or sheep dogs.

(ii) The aiding of handicapped individuals or the performance of protective services, providing that the animal has been professionally trained for that specific purpose.

(C) "Work animals" shall not include animals raised, trained, or held as pets or for sport or show.

(D) Exemption certificates are not required on sale of horses, mules, or any form of animal life of a kind, the products of which ordinarily constitute food for human consumption. Sales tax is due on the sale of all other animals unless the purchaser provides a valid and properly completed resale or exemption certificate.

(2) Hay, corn, oats, and any other type of feed normally consumed by farm and ranch animals, animals that are held for sale in the regular course of business, and wildlife.

(A) Included in this section is feed for animals covered by paragraph (1) of this subsection, feed for animals held for breeding purposes whose offspring are held for sale in the regular course of business, and wildlife. Examples of feed purchased for wildlife include deer corn and perishable bait used for commercial, sport and recreational fishing. Feed purchased for an animal that might normally be kept as a pet is taxable. Pets normally include, but are not limited to, dogs, cats, rabbits, hamsters, and tropical fish.

(B) All persons selling the type of feed that is normally consumed by farm and ranch animals or wildlife may sell the feed tax free without an exemption certificate. Persons selling food for an animal that might normally be kept as a pet should collect sales tax or accept a valid and properly completed resale or exemption certificate from the purchaser.

(3) Seeds and annual plants, the products of which ordinarily constitute food for human consumption, are used to produce feed for animals exempted by this section, or are to be sold in the regular course of business. An exemption certificate is not required when purchasing these items.

(4) Fertilizers, fungicides, insecticides, herbicides, defoliants, and desiccants exclusively used or employed on farms or ranches in the production of food for human consumption, feed for any form of animal life, or other agricultural products to be sold in the regular course of business. However, when these particular items are used in commercial storage facilities or other storage facilities that are not operated exclusively by the owner or are not located on the farm or ranch, the exemption is lost and the tax must be remitted on the sales price of the items. Fertilizer is taxable if sold for use on lawns, home gardens, or for any uses other than those listed in this paragraph. See subsection (d) of this section regarding exemption certificates.

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