Texas – Taxability of Aircraft Used for Aerial Wildlife Management

SALT Report 1622 – In the latest issue of Tax Policy News, the Texas Comptroller’s quarterly newsletter, the taxability of aircraft and accessories used for aerial wildlife management are discussed.
Wildlife management is considered an amusement service in Texas and most items used by the provider of an amusement service are taxable. However the purchase of an aircraft used to provide predator control is exempt under Tax Code Sec. 151.328 (a)(5)if the aircraft is bought for exclusive use in qualified agricultural activities.
Qualified agricultural activities include:
  • Predator control
  • Wildlife or livestock capture
  • Wildlife or livestock surveys
  • Census counts of wildlife or livestock
  • Animal or plant health inspection services, and
  • Crop dusting, pollination or seeding

The exemption also applies to repair and replacement parts and labor for the aircraft.

Qualified aircraft must be used exclusively for agricultural operations 95% of the time on one of the activities listed above. The exemption limits travel to 30 miles each way for each exempt service performed and the aircraft owner must maintain flight records to verify the mileage.

The exemption does not apply to firearms, ammunition, or other machinery or equipment used by the aircraft owner or operator. Any use of the aircraft for non-agricultural purposes will result in loss of the exemption.

For Further Information:

Texas Comptroller of Public Accounts – Tax Policy News