The Lubbock Rate
Inside the Lubbock city limits, buyers pay 8.25 percent. Of that, the state keeps 6.25 percent, the City of Lubbock 1.5 percent and Lubbock County 0.5 percent. Lubbock is not part of a transit authority, so the city keeps a larger local share than cities such as Dallas or Houston. Smaller towns nearby, including Wolfforth, Slaton and Shallowater, have their own rates. We handle sales tax permits and returns for Lubbock sellers remotely.
See the Texas sales and use tax page for permits and taxable services statewide; this page covers Lubbock's rate and farm exemptions.
Agricultural Exemptions
Farmers and ranchers who register with the Comptroller receive an agricultural and timber registration number. They can buy qualifying items tax free, including tractors, irrigation equipment, seed, fertiliser, pesticides and feed, as well as repair parts for farm machinery. Sellers must record the buyer's number and keep the exemption certificate. Items used for both farm and personal purposes, such as pickups, are generally taxable.
Equipment Dealers and Repair Shops
Dealers selling to farmers need current agricultural numbers on file and must charge tax on sales to non-farm buyers. Repair labour on farm machinery is exempt when the customer has a valid number. Dealers that rent equipment collect tax on rentals unless the renter is exempt. Parts and supplies used in the dealer's own shop are taxable.
Gins and Processing
Gins and processors can buy machinery used directly in processing tax free. Bale wrap, ties and other packaging that becomes part of the product sold are also exempt. Office equipment, vehicles and maintenance supplies are taxable.
Restaurants, Bars and Game Days
Bars and restaurants in the Depot District and along Broadway charge sales tax on meals and soft drinks; a bar with a mixed beverage permit charges its customers 8.25 percent mixed beverage sales tax on drinks and separately pays the state 6.7 percent of its alcohol receipts. Football weekends and graduation bring large crowds, and vendors at tailgates and events need permits.
Hotel Tax
A Lubbock hotel room rented for under 30 days carries 15 percent tax in total: 6 percent state, 7 percent city and 2 percent county venue tax, which has applied since July 2019. Short-term rental hosts must collect and report unless a platform does it for them, and rentals to students for less than 30 days may be subject to hotel tax.
Electricity Purchases
Since Lubbock Power & Light joined the ERCOT market, Lubbock customers choose a retail electricity provider. Residential electricity is exempt from state sales tax, while most commercial electricity is taxable. Manufacturers and processors may claim an exemption for electricity used in processing, supported by a utility study.
Use Tax
A shop that buys a welder from a dealer in Clovis or Hobbs, or anything online, without Texas tax owes Texas use tax at 8.25 percent. Farmers using such purchases for agriculture may claim the exemption if they qualify.
Dairies and Feedyards
Dairies around Lubbock and the feedyards of the wider Panhandle buy feed, minerals, veterinary supplies and equipment for animals raised for food, which are exempt with an agricultural number. Milking equipment and cooling tanks used in producing milk generally qualify. Items for the farm office, the owner's personal vehicles and general shop tools do not.
Contractors and Irrigation
Installing centre pivots and drip systems on farmland raises the question of whether the work is a real property improvement or the sale and installation of farm equipment. Irrigation equipment sold to a farmer with a valid agricultural number is exempt, and installation labour may also be exempt, depending on whether the system stays equipment or becomes part of the land. Contractors drilling or repairing water wells should confirm how each job is classified.
What We Handle
- Permits and local codes.
- Agricultural exemption files.
- Monthly or quarterly returns.
- Utility studies for processing.
- Hotel and mixed beverage returns.
Lubbock Sales and Use Tax Questions
How do farmers buy equipment tax free?
With an agricultural and timber registration number from the Comptroller.
How is the Lubbock rate split?
6.25 percent state, 1.5 percent city and 0.5 percent Lubbock County.
How much is hotel tax in Lubbock?
15 percent, including a 2 percent county venue tax.
Is commercial electricity taxable?
Usually yes, though electricity used in processing may be exempt with a utility study.
Talk to BOMCAS About Sales and Use Tax in Lubbock
Every exempt ag sale needs a matching entry in the dealer's books, and the totals should agree with the business return. Parts counter and shop staff run through payroll. Old exemption gaps can be cleaned up under late filing, a new store or rental fleet is a planning decision, dealers' profits reach their personal returns, and buyers from abroad bring cross-border questions. From the Panhandle to the coast, our Texas pages on business and farm returns, personal returns, bookkeeping, payroll, planning, late filing and cross-border tax set out the statewide rules, gathered in the Texas overview.
Whether it is a section of irrigated cotton, a shop on 34th Street or a household near campus, a short description is enough for BOMCAS to suggest a starting point and list the records a quote would need. Reach us on the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. Each Lubbock service is linked from the Lubbock overview. Nothing here is advice for a particular farm, business or family.