Sales taxes on dogs are due as follows:

Sales Tax Policy per Texas Comptroller of Public Accounts

Breeders and other persons who sell pets in the regular course of business
are required to get a sales tax permit and to
collect tax.

Texas sales tax is due when the customer picks up or takes delivery of a
taxable item or dog in Texas. Sales made over
the Internet would be taxable in the same manner.

The only exemption from sales tax for dogs is found in Rule 3.296,
Agriculture, Animal Life, Feed, Seed, Plants, and
Fertilizer. The exemption is specifically for work animals; it applies to those
used exclusively to produce agricultural
products (e.g., sheep dogs), as well as dogs trained to aid handicapped
individuals (e.g., seeing eye dogs) or for the
performance of protective services (e.g., guard dogs).

There is no exemption for animals held for sport or show or as pets.

A breeder who buys dogs and holds them strictly for resale (i.e., not for
breeding or other purposes) may issue a resale
certificate [Form 01-339(Front)].   Animals may not be purchased tax free for
breeding purposes unless they meet one of
the exemptions in Rule 3.296.

Complete Texas sales tax information, including rules, statutes,
publications, and frequently asked questions, can be found
on the Sales and Use Tax Web page at :  See Rule 3.285, Resale Certificates,
and Rule 3.287, Exemption Certificates.

If you have any questions or need additional information, call 1-800-531-5441
ext. 36563, or write to Tax Policy Division,
P. O. Box 13528, Austin, Texas 78711-3528.