A timber machine or trailer is exempt from motor vehicle sales and use tax if it is used at least 80 percent of the time in timber operations.
Timber machine – a self-propelled motor vehicle specially adapted to perform a specialized function for use primarily in timber operations, such as land preparation, planting, maintenance or harvesting of commercial timber that will be sold in the regular course of business. e., grappling arm) for moving logs.
- crew vehicles;
- field service vehicles; or
- self-propelled motor vehicles specifically designed or adapted to transport timber or timber products, including those designed to transport cargo and adapted with a cargo-loading device.
How to Claim the Exemption
To claim exemption from motor vehicle sales and use tax on the purchase of a qualified farm or timber machine or trailer, you must provide the dealer a properly completed Form 14-319, Texas Motor Vehicle Exemption Certificate for Agricultural and Timber Operations (PDF) .
The exemption must also be claimed at the time of titling or registration with the local County Tax Assessor-Collector by entering your current Ag/Timber Number on Form 130-U, Application for Texas Title.
Farm Plates – For information on registering (or renewing registration of) a motor vehicle with farm plates, contact your local county tax assessor-collector or the Texas Department of Motor Vehicles at .
Motor Vehicle Rental Tax Exemption
When claiming exemption from motor vehicle gross rental receipts tax when you rent qualifying farm or timber machines trailers, you must enter your Ag/Timber Number and expiration date on Form 14-305, Motor Vehicle Rental Tax Exemption Certificate (PDF) .
Motor fuel is taxed when it is removed from the terminal rack. The tax is included in the price you paid at the pump. You may qualify for a refund on your gasoline purchases, and you may be able to purchase dyed diesel fuel tax free.
You cannot purchase gasoline tax free; however, you can apply for a refund (PDF) of tax paid on gasoline used in off-highway equipment such as tractors, mowers and generators.
- Clear diesel is subject to the state highway fuel tax and is intended for highway use.
- Dyed diesel is not subject to the state highway fuel tax and is intended for off-highway use.
All purchases of clear diesel fuel are taxable, including clear diesel fuel used in off-highway equipment such as tractors and combines. There is no tax exemption or refund when you purchase clear diesel fuel.
Dyed diesel fuel used to power non-highway equipment, such as tractors or combines, can be purchased tax free directly from your fuel supplier. You are not required to have a state fuels tax license when your supplier pumps the dyed diesel directly into the fuel tank of your off-highway equipment. The fuel supplier must maintain the required fuel records and documentation to verify the purchase.
If you purchase dyed diesel in bulk (fuel supplier delivers dyed diesel into your storage tank), then you will need to apply for one of the following:
– AG Signed Statement Number – which allows you to purchase up to 25,000 gallons of tax-free dyed diesel per month for exclusive use in agricultural off-highway equipment operated in Texas; – DD Signed Statement Number – which allows you to purchase up to 10,000 gallons of tax-free dyed diesel per month for use in off-highway equipment operated in Texas for non-agricultural purposes such as timber operations; or – Bonded User Number – which allows you to purchase unlimited amounts of tax-free dyed diesel fuel per month for use in off-highway equipment operated in Texas.