Amarillo Sales and Use Tax

Amarillo's Rate

Amarillo's sales tax is 8.25 percent in both Potter and Randall counties: 6.25 percent for the state and 2 percent for the city. Neither county adds its own sales tax within the city. BOMCAS handles sales tax for Amarillo businesses remotely.

For permits and taxable services in general, see the Texas sales and use tax page. Amarillo's farm exemptions, truck stops and hotels are below.

Agricultural Exemptions

Farmers and ranchers can buy feed, seed, fertiliser, farm machinery and certain other items used to produce agricultural products for sale without tax, using an agricultural and timber registration number from the Comptroller. Feedyards buy feed and medicines for cattle tax free on that basis. Sellers must record the registration number, and the exemption does not cover items used for personal purposes or general business supplies.

Truck Stops and Travel Centres

Truck stops along Interstate 40 sell fuel, prepared food, groceries, merchandise and services. Motor fuel is subject to fuel taxes rather than sales tax. Prepared food is taxable; packaged groceries are generally exempt. Showers, parking and other services need their own review. The register must apply the right rule to each item.

Truck and Equipment Repairs

Labour to repair motor vehicles, including trucks and trailers, is not taxable in Texas, but the parts are. Repair of farm machinery and industrial equipment is taxable as repair of tangible property, unless the machinery qualifies for the agricultural exemption, in which case repair labour on it is exempt as well. Repair shops should code each job by the type of equipment.

Plant Suppliers

Materials and equipment used directly in processing beef or manufacturing aircraft components can be bought tax free with a manufacturing exemption certificate. Supplies used for maintenance, sanitation or offices are generally taxable, though some items required for public health compliance qualify for exemption.

Feed Stores and Farm Supply

Feed and farm supply stores sell to ranchers, feedyards and town customers at the same counter. A sale is exempt only when the buyer gives a current agricultural and timber registration number and the item qualifies for agricultural use; dog food, lawn supplies and general hardware stay taxable even for a rancher. The store keeps the buyer's number with each exempt sale, and point-of-sale systems that store registration numbers by customer make audits far easier.

Livestock Sales

Cattle and other livestock sold for food production are not subject to sales tax, so ranchers and feeders do not collect tax when they sell cattle. Horses sold for pleasure or showing, and tack, saddles and western wear sold to the public, are taxable.

Restaurants and Shops

Restaurants collect tax on prepared food and drinks, and bakery items sold without plates or utensils are exempt. Mandatory gratuities of 20 percent or less, clearly labelled and paid to staff, are not taxable.

Hotel Tax

Hotel stays in Amarillo carry 15 percent tax: 6 percent state, 7 percent city and 2 percent for the Amarillo-Potter Events Venue District. Hotels along Interstate 40 and short-term rental hosts must collect and file all three.

Our Work

Permits and returns.
Agricultural registrations and exemptions.
Truck stop register settings.
Repair invoice coding.
Hotel tax filings.
Audits and refunds.