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 : http://window.state.tx.us/taxinfo/sales/.  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.