True or False: Sales tax is due on agricultural products intended for consumption or manufacturing.

True or False: Sales tax is due on agricultural products intended for consumption or manufacturing.

• A. True
• B. False
• C. Only if sold at auction
• D. Only if not for resale

Answer: (A)

The correct answer is true because, under Texas law, sales tax is generally applicable to the sale of tangible personal property, including agricultural products. However, there are specific exemptions regarding items intended for resale or certain agricultural uses. In the case of agricultural products specifically intended for consumption or manufacturing, they are generally considered taxable unless they fall under specific exemptions defined by Texas Tax Code. For example, if the agricultural products are designated for resale, they may qualify for an exemption, but products sold for immediate consumption do not qualify and are subject to sales tax. Therefore, it’s essential to understand the intended use of the agricultural products in determining whether sales tax applies.

The correct answer is true because, under Texas law, sales tax is generally applicable to the sale of tangible personal property, including agricultural products. However, there are specific exemptions regarding items intended for resale or certain agricultural uses.

In the case of agricultural products specifically intended for consumption or manufacturing, they are generally considered taxable unless they fall under specific exemptions defined by Texas Tax Code. For example, if the agricultural products are designated for resale, they may qualify for an exemption, but products sold for immediate consumption do not qualify and are subject to sales tax. Therefore, it’s essential to understand the intended use of the agricultural products in determining whether sales tax applies.