taxes

Motor Vehicle Tax Guide

Timber Operations

Exemptions

The retail sale of a timber machine or timber trailer is exempt from motor vehicle tax if the timber machine or timber trailer is used primarily (at least 80 percent of the time) in timber operations.

A timber machine is 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. An example is a cab chassis with an articulating arm (i.e., grappling arm) for moving logs.

A timber trailer is a trailer designed for and used primarily in a timber operation.

Qualified Use

Timber machines and timber trailers qualify for exemption if they are used in the production of timber, including land preparation, planting, maintenance and gathering trees commonly grown for commercial timber.

A timber machine does not include a self-propelled motor vehicle specifically designed or adapted for the primary use of transporting timber or timber products, including a self-propelled motor vehicle designed to transport cargo and adapted with a cargo-loading device. The term also does not include field service vehicles, such as those used to fuel or maintain other vehicles or crew vehicles.

Claiming the Exemption

The motor vehicle ag/timber exemption is claimed in Box 38 of Form 130-U, Application for Texas Title and/or Registration (PDF), when purchasing or registering qualified exempt farm/timber machines, trailers and semi-trailers. The 11-digit Ag/Timber Number is issued by the Comptroller’s office. The number is entered on the "Exemption claimed under the Motor Vehicle Sales and Use Tax Law because:" section on the form.

Although county tax assessor-collectors are not required to verify Ag/Timber Numbers before accepting a claim for exemption, an online verification system is available on the Comptroller’s Ag/Timber Registration search webpage.

96-254
(09/2021)