Texas Comptroller of Public Accounts    STAR System


200502997L




February 10, 2005

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Dear **************:

Thank you for your recent email about the tax treatment of a global positioning 
system is mounted on a tractor.

The agricultural global positioning system is mounted on the tractor.  It will 
autosteer the tractor so that rows are straight, more accurate spacing of rows, 
etc.  Basically the only thing the driver needs to do is turn the tractor 
around at the end of the field.  The system also helps in leveling, spraying, 
and at harvest. 

Response:  Used in the manner described, the global positioning system 
qualifies for the agricultural exemption in Tax Code Sec. 151.316 (Rule 3.296). 
 You may accept an exemption certificate in lieu of collecting sales tax from 
farmers making such purchases.

This opinion is based on the facts you presented.  Other facts, though similar, 
may yield different results.

Please feel free to call me with sales tax questions that you may have.  You 
may reach me toll-free at 1-800-531-5441, ext. 3-4680.  The direct line is 
(512) 463-4680.  You may also write to Tax Policy, Comptroller of Public 
Accounts.  The email address is tax.help@cpa.state.tx.us.

Our goal is to provide you with prompt, professional service.  Please take a 
moment to complete our on-line survey at 
http://aixtcp.cpa.state.tx.us/surveys/tpsurv/.

Sincerely,


Al Van Allen
Tax Policy Division




From: ************** [mailto: **************]
Sent: Tuesday, February 01, 2005 2:32 PM
To: Al Van Allen
Subject: RE: Tax question

Al Van Allen,

The agricultural global positioning system is mounted on the tractor.  It will 
autosteer the tractor so that rows are straight, more accurate spacing of rows, 
etc.  Basically the only thing the driver needs to do is turn the tractor 
around at the end of the field.  The system also helps in leveling, spraying, 
and at harvest.  The website you can go to is www.sgsunlimited.com

I would like written confirmation if this qualifies as farm equipment.

Thank you,


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-----Original Message-----
From: ************** [mailto: **************]
Sent: Wednesday, January 26, 2005 1:48 PM
To: tax.help@cpa.state.tx.us
Subject: Tax question

Do agricultural global positioning systems qualify for the exemption as farm 
machinery?  These are mounted on tractors, etc.


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ACCESSION NUMBER: 200502997L   
SUPERSEDED: N 
DOCUMENT TYPE: L 
DATE: 02/10/2005 
TAX TYPE: SALES