Learned a new tax law goes into effect in Texas Jan 2012. If you are in the AG business and you want to be tax exempt on certain items you will need to apply for a Ag use tax number. If you come in and don't have that number you will be charged sales tax. Also saddles used for Ropings, Rodeos, and Show saddles, that are not also used as a working saddle in Ag use is no longer sale tax exempt.