Office of the Texas State Chemist website

2016 Commerical  Feed Annual Report

Feed Inspection Fees and Financial Statement



Payment of the Inspection Fee

Every lot of every product coming within the definition of the term "commercial feed" is subject, in addition to other requirements of the law, to the payment of the inspection fee.

Tonnage Reporting System
Facilities with licenses to distribute commercial feeds, including customer formula feeds, pay a minimum annual inspection fee of $100, due with the first quarterly report (ending November 30) of each year (except as described in the succeeding paragraph). This minimum annual fee will be credited toward the tonnage fee owed during the fiscal year. The minimum fee presently covers the first 526.32 tons of feed (19 cents/ton). Once this annual fee credit is depleted, a remittance of 19 cents per ton sold shall be submitted during the remainder of the fiscal year. Report forms are mailed to facilities approximately 10 days prior to the end of a quarter or 10 days prior to August 31 in the case of facilities reporting annually. If a report form has not been received prior to the first day of a new quarter, or September 1 for annual reporting facilities, a call should be made to (979) 845-1121 requesting that one be sent to you.

Product Annual Inspection Fees
Facilities with licenses for commercial feeds in containers weighing five pounds or less only will pay a flat rate annual fee of $50 per product, due September 1 of each State fiscal year. If the same registered product is distributed in containers weighing more than five pounds, the flat rate annual fee will not apply and the inspection fees on all sizes of that product must be paid by the tonnage reporting system.

If distribution of a product into the State is discontinued prior to the last month of the State fiscal year, but remains shelved or floor stocked for sale to the public more than three months into the next fiscal year, the flat rate annual fee of $50 per product will be required. Otherwise, the product must be recalled from the market after the close of the State fiscal year, which is August 31. If distribution of a product is made up through the last month of the State fiscal year, the annual payment will be required.

Penalty for Delinquent Reporting and Payment of Inspection Fees
If quarterly tonnage reports are submitted late [see para 141.073(a), a penalty fee of $50 or 15% of the amount of the fee due (whichever is greater) must also be paid. Reports are due and subject to the minimum penalty even if no tonnage is sold in a particular quarter. If a facility fails to pay or report after a reasonable period, their license to distribute in Texas may be canceled.

Note:
Specific questions concerning reporting of tonnage or payment of fees should be directed to the OTSC Fee Section @ (979) 845-1121.





2016  Financial Statement of Feed  Revenue, Expenditures and Fund Balance



Income
Quarterly Tonnage Fees $3,769,805
Penalties $70,360
Product Annual Fees $608,450
Facility License Fees $28,275
Miscellaneous $71,469
Total Income $4,548,359
Expenditure
Salary and Wages $2,168,509
Employee Benefits $773,741
Other Expenses $888,341
Capital Outlay $90,933
Building Loan Pmt/Building Renovation$550,000
Total Current Expenditures and Obligations $4,471,524
Balance (all Feed Sources including previous year) as of Aug 31, 2016 $2,092,340


Note: Historically an informal understanding existed between the Control Service and the Feed and Fertilizer Advisory Committee that a reserve equal to six months operating expenses should be kept on hand to off set any drastic change in economic conditions. This agreement was formally adopted in the November 11, 1993 meeting of the Advisory Committee. This same agreement was codified in Section 141.071(c) which requires a fee reduction if the fund exceeds 50% of the operating expenses of the Service for the next fiscal year.