Do Metal Buildings Qualify for Agricultural Tax Exemption in Texas?

July 23, 2025

When you think of Texas, you think of longhorns, Cowboys, and Friday night lights, but also of rural living and agricultural land. This makes it a hub for metal buildings used for everything from equipment storage to livestock shelter. They’ve become a staple across the Lone Star State!

As metal builders, one question we hear all the time is: Do metal buildings qualify for an agricultural or timber sales tax exemption in Texas?

Let’s break it down.

How Metal Buildings Are Used in Agriculture?

Metal buildings are commonly used on Texas ranches and farms for:

Storing feed, hay, or farming equipment
Housing animals like horses, cattle, or goats
Serving as workspaces for agricultural processing or repair
Even housing farmhands or family with finished-out interiors

The possibilities are endless when it comes to uses. We get new ways submitted everyday! So given these agricultural uses, it’s easy to assume that these structures would automatically qualify for an ag/timber exemption when purchased; however, there can be exemptions.

So, Are Metal Buildings Exempt?

The answer is: It depends.

It depends on the type of tax exemption being submitted. Texas metal buildings always qualify for several tax exemptions like resale, churches, schools, or government purposes.

For agricultural use metal buildings do not qualify. According to the Texas Comptroller’s website, specifically Publication 96-1112: Texas Agricultural Sales Tax Exemptions, metal buildings are taxable items. They fall under: Materials used to construct roads or buildings used for shelter, housing, storage or work space. (examples include general storage barns, sheds or shelters)

In other words you will likely need to pay sales tax at the time of purchase even if the building is for agricultural use.

Why the Confusion?

With the rising popularity of barndominiums which are hybrid structures that combine living space with a large, open metal barn-style design; the lines have been blurred. Many barndos are finished out as primary homes, thus exempting sales tax on homes.

Because these dual-purpose structures exist, some people assume that any metal building associated with agriculture is tax-exempt. But from a tax perspective, barndominiums are considered residential and even agricultural use doesn’t automatically qualify the structure for exemption.

Can You Get the Tax Back?

Yes, there’s a potential workaround. While you’ll pay sales tax upfront, you may be eligible for a refund when filing your taxes, especially if you can prove that the structure is used for a qualifying agricultural business purpose.

Keep in mind:

You’ll need proper documentation (including receipts and evidence of ag use)
A licensed tax professional can help you file a claim for refund

This can be done at the end of the fiscal year when you file your taxes.

What does WolfSteel Think?

Texas metal buildings are an incredible investment for anyone in agriculture, ranching, or rural living. Agriculture is one of the biggest industries in the State of Texas so we understand this can be confusing. Just be aware that the initial sales tax is typically unavoidable, unless the structure meets very narrow exemptions. Ensuring proper steps are taken at the beginning will avoid fines and back taxes on a building previously purchased.

Before you buy, we always recommend:

Reference the Texas Comptroller of Public Accounts website for information.
Consulting with a CPA familiar with agricultural exemptions in Texas
Reading Texas Publication 96-1112 (or having your contractor do so)
Budgeting for tax at the time of sale, so you’re not caught off guard

If you purchased a building with us and need paperwork for filing during tax time. Give us a call and we can provide you with your contract, plans, or anything you may need from us. We are here to help!

Need Help in Planning a Metal Building?

At WolfSteel Buildings, we work with landowners every day to design structures that meet their needs. Whether it’s a barn, storage facility, or detached garage, we can help you build smarter.