Texas has clarified changes relating to exemptions from sales and use tax for certain aircraft, including related machinery and equipment. Effective September 1, 2009, machinery and equipment exclusively used in an agricultural aircraft operation, as defined by 14 C.F.R. Section 137.3, are exempt from sales and use tax. Aircraft are exempt from sales and use tax if sold to a person for use exclusively in connection with an agricultural purpose and used for: 1) predator control; 2) wildlife or livestock capture; 3) wildlife or livestock surveys; 4) census counts of wildlife or livestock; 5) animal or plant health inspection services; 6) crop dusting, pollination, or seeding; or 7) repair, remodeling, and maintenance services. To qualify for the exemption, an aircraft must be used exclusively in connection with an agricultural purpose – met if 95% of the use is for the purposes listed above. Travel of less than 30 miles each way to a location to perform one of the listed services does not disqualify an aircraft from the exemption. A person who claims the exemption must maintain and make available to the comptroller flight records for all uses of the aircraft. (S.B. 958, Laws 2009, effective September 1, 2009)