Texas Taxes Perennial Plants and Gardening Products

Jul 19th, 2021

Texas recently released guidance on the taxability of seasonal plants and gardening products. Texas generally exempts seeds and annual plants that are (1) food for humans, (2) inventory for resale in the normal course of business, or (3) feed for animals. Annual plants are plants that grow, flower, and die in a year or season. Perennial plants (plants that live for more than two years) are taxable. This include perennials that produce food for humans. However, the produce harvested from perennials for human consumption is not taxable.

Flower bulbs, flower seeds, and seeds for non-edible plants are generally taxable. Trees are also generally taxable, including fruit and nut trees. However, entities that grow and sell agricultural products grown from these seeds or trees may claim an exemption. To qualify, they must sell the agricultural products in the regular course of their business. To claim the exemption, the buyer must provide the seller with a valid agricultural exemption certificate or confirmation letter.