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Texas Comptroller’s Office Amends Rule 3.344

Texas Comptroller’s Office Amends Rule 3.344, Telecommunication Services

The Texas Comptroller of Public Accounts has issued a revised Texas Administrative Code Rule 3.344 related to Telecommunication Services to reflect Senate Bill 140, 84th Legislature, 2015, which amended Tax Code, §151.316, subject to §151.1551, to exempt telecommunications services exclusively provided or used for the navigation of specified machinery and equipment exclusively used on a farm or ranch effective September 1, 2015.

The updated language is reflected in Subsection (c), which addresses nontaxable and exempt telecommunications services. A new paragraph (7) has been added which reads:

(7) telecommunications services exclusively provided or used for the navigation of machinery and equipment exclusively used or employed on a farm or ranch in the building or maintaining of roads or water facilities or in the production of:
(A) food for human consumption;
(B) grass;
(C) feed for animal life; or
(D) other agricultural products to be sold in the regular course of business.
(E) The purchaser must be an agricultural registrant and provide the seller with an agricultural exemption certificate.
(F) This paragraph is effective September 1, 2015, and applies to telecommunication services provided after this date.

All other sections of Rule 3.344 remain unchanged and telecommunication services used to navigate farm equipment prior to September 1, 2015 remain subject to tax.