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Thread: Farm Tax Exemption:

  1. #1
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    Farm Tax Exemption:

    An article in the Abilene Reporter today indicated that farmers will have to have a tax Exemption registration number next year.
    I downloaded an application. The tax break sure helps out when buying feed, fencing, and other necessities around the farm.
    I hope the tax exemption is eliminated in the future.

  2. #2
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    Yep this law passed and went into affect in september.

  3. #3
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    When Reaganomics destroyed the economy the first time around, then President George HW Bush hired more IRS auditors to audit American taxpayers. He thought they must have been cheating on their taxes, and couldn't understand why Reaganomics would cause a recession.
    So now we have another recession as the direct result of the republicans failed Reaganomics and Rick Perry is picking on Texas farmers trying to get another nickle out of them in the middle of the worst drought in sixty years.
    Secretary,
    Harper Valley PTA

  4. #4
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    MM you be sure and get your exemption, with as much bull as you put out you should qualify. Oldgoat we applied online and got ours in the mail the other day. Apparently we need to give a copy to the merchants we deal with. Goes into effect the first of the year I think. Need to give a copy to the court house folks to get your farm tags also.

  5. #5
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    Well looky who's on the dole.

  6. #6
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    Is there something about farming and ranching that offends you?

  7. #7
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    Quote Originally Posted by MiraculousMutha View Post
    When Reaganomics destroyed the economy the first time around, then President George HW Bush hired more IRS auditors to audit American taxpayers. He thought they must have been cheating on their taxes, and couldn't understand why Reaganomics would cause a recession.
    So now we have another recession as the direct result of the republicans failed Reaganomics and Rick Perry is picking on Texas farmers trying to get another nickle out of them in the middle of the worst drought in sixty years.
    Work behind the counter at the lumberyard for a while and see how much is declared farm use that really isn't.

  8. #8
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    Quote Originally Posted by Happy JP View Post
    Is there something about farming and ranching that offends you?
    I suspect hard work is what offends MM.

  9. #9
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    What offends me are those who would deny welfare and healthcare to the less fortunate, while helping themselves to the pie.

  10. #10
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    What does this have to do with an Ag exemption?

  11. #11
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    If it were not for farmers and ranchers there would be no pie on the table. Both industries as a whole would like to see the abuse to the farm exemption stopped. I think that is part of the new registration system's purpose. We would not need any of it if the government would stay out of farming. Political pockets of both parties seem to always be empty.

  12. #12
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    Signing up for the new ag exemption will open the door for the state to send auditors to farms to investigate purchases and see for themselves how they were used.

  13. #13
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    Quote Originally Posted by Happy JP View Post
    If it were not for farmers and ranchers there would be no pie on the table. Both industries as a whole would like to see the abuse to the farm exemption stopped. I think that is part of the new registration system's purpose. We would not need any of it if the government would stay out of farming. Political pockets of both parties seem to always be empty.
    If not for table builders, there would be no place to eat pie.
    "I believe that banking institutions are more dangerous to our liberties than standing armies." Thomas Jefferson

  14. #14
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    Where I live, there is no easy way to get an ag exemption. To obtain an ag exmp, I was told to start a file and maintain said file for FIVE years! At the end of five years, the "ag person" would come to your residence, review your file, and decide if you had "attempted to maintain a "crop" and attempt to make a profit on your crop. A crop is defined as planting something in the ground or keeping a "group of animals" in order to make a profit.

    It would seem that laws are already in place to prevent frivolous applications for agricultural exemptions to avoid paying taxes.
    Walk softly and carry a big stick.

  15. #15
    Quote Originally Posted by lamb View Post
    Where I live, there is no easy way to get an ag exemption. To obtain an ag exmp, I was told to start a file and maintain said file for FIVE years! At the end of five years, the "ag person" would come to your residence, review your file, and decide if you had "attempted to maintain a "crop" and attempt to make a profit on your crop. A crop is defined as planting something in the ground or keeping a "group of animals" in order to make a profit.

    It would seem that laws are already in place to prevent frivolous applications for agricultural exemptions to avoid paying taxes.
    That sounds like the property tax ag exemption rather than the sales tax exemption. Two different things, but both get abused (just like all other government programs).
    A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.

  16. #16
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    Here's a question: can a farm (any size) be called a farm if it supports the farmers with food and basic necessities but doesn't turn a profit? Is this not what most farms in the world are like & have been? Small farms with subsistence farming? I personally don't think farms have to be businesses, nor be the major source of income for the family. if so does it fall und Farm Tax Exemption?

  17. #17
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    Well I sure can't help you too much with the profit aspect. If you go to getreadytexas.com then download the application it will pretty much answer your questions as to whether or not you qualify. Most of the businesses now have applicable purchases keyed in to their computers and you will not get an exemption on non-applicable purchases. If you are farming or ranching the IRS will notify you if you do not claim the exemption in some cases. The government would lose a lot of good jobs if we could do away with the exemption and get them out of our business.

  18. #18
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    Quote Originally Posted by Happy JP View Post
    Well I sure can't help you too much with the profit aspect. If you go to getreadytexas.com then download the application it will pretty much answer your questions as to whether or not you qualify. Most of the businesses now have applicable purchases keyed in to their computers and you will not get an exemption on non-applicable purchases. If you are farming or ranching the IRS will notify you if you do not claim the exemption in some cases. The government would lose a lot of good jobs if we could do away with the exemption and get them out of our business.

  19. #19
    Heck milk the system and take all you can get. Thats the way it works anyway. Thats why most farmers and ranchers never retire from the land cause social security doesnt pay and they barely survive from the land due to weather conditions.

  20. #20
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    Quote Originally Posted by batt75 View Post
    Heck milk the system and take all you can get. Thats the way it works anyway. Thats why most farmers and ranchers never retire from the land cause social security doesnt pay and they barely survive from the land due to weather conditions.

  21. #21
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    http://www.window.state.tx.us/taxinf...ady_texas.html

    Who DOES qualify 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. This number 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.

  22. #22
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    ...a "land of the free" that struggles under the incredible burden of limitless taxes and laws; the home of the "brave" who stay silent to keep their jobs and avoid scrutiny by the IRS or the police. ~Fred Woodworth, The Match!, No. 74

  23. #23
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    I don't see any farmers in the midwest or here getting bennies from the government when their respective crop fail.

  24. #24
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    It should not be left up to retailers to police this.They are there to help customers.Flat tax for everyone and I mean everyone.

  25. #25
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    Quote Originally Posted by cyotefishing View Post
    I don't see any farmers in the midwest or here getting bennies from the government when their respective crop fail.
    Research Federal Crop Insurance.

  26. #26
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    Federal Crop Insurance is not free....you buy it...just like Car, House and Medical Insurance.

  27. #27
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    Quote Originally Posted by Visionary View Post
    Federal Crop Insurance is not free....you buy it...just like Car, House and Medical Insurance.
    I didn't say it was free. It is, however, heavily subsidized by the federal government. Catastrophic insurance is free, though.

  28. #28
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    Catastrophic crop insurance (CAT) — A component of the federal crop insurance program, originally authorized by the Federal Crop Insurance Reform Act of 1994 (P.L. 103- 354). CAT coverage compensates farmers for crop yield losses exceeding 50% of their average historical yield at a payment rate of 55% of the projected season average market price. CAT coverage requires that a farmer realize a yield loss of more than 50% and only makes payments on losses exceeding the 50% threshold. Producers pay no premium for CAT coverage, but except for cases of financial hardship must pay an administrative fee of $300 per crop. A producer has the ability to purchase additional insurance coverage (or buy-up coverage) beyond CAT coverage, but must pay a premium, partially subsidized by the government.

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