| Animal Shelters). (j) Diplomatic tax exemptions. (1) Sales tax exemptions provided to foreign diplomatic and consular personnel in the United States are governed by international and federal law as administered by the United States Department of State's Office of Foreign Missions. (2) Types of exemption cards. (A) Mission tax exemption cards. Mission tax exemption cards can only be used for official purchases by a foreign consulate or embassy. All purchases must be made in the name of the mission and paid for by a mission check or credit card, not by cash or personal check. The person whose name and photo appear on the card is responsible for ensuring the accuracy of the exemption, but does not need to be present when purchases are made in the name of the mission. (B) Personal tax exemption cards. Only the person whose photo appears on the front side of the card is permitted to use it to purchase the exempted items that are identified on the card. Personal tax exemption cards are not transferable and may not be used by others. (3) Procedures for retailers. (A) Diplomatic tax exemption cards must be presented to the seller at the time of sale for the exemption to apply. If the exemption is not claimed at the time of sale, the comptroller will not refund tax paid on an item which qualifies for a diplomatic tax exemption. The card must be signed. (B) To document the sale of an item subject to a diplomatic tax exemption, a retailer should retain a copy of the sales invoice or contract that bears the identification number appearing on the diplomatic tax exemption card or should make a photocopy of the front and back of the card. (C) Certain diplomatic exemption cards are limited to what and how much may be purchased tax free or may require a minimum purchase before the exemption can be claimed. This information is contained on the diplomatic exemption card itself. Retailers who make sales to persons with cards that require purchases to exceed a certain dollar limit should include only those taxable items that are purchased in the same transaction to determine if the appropriate level has been reached. Purchases made in separate transactions may not be added together to reach minimum exemption levels. Neither type of card identified in paragraph (2) of this subsection can be used to obtain the tax free sale of utilities. (k) The Alabama-Coushatta, Kickapoo, and Tigua Native American tribes. (1) The purchase, lease, or rental of a taxable item to a tribal council or a business owned by a tribal council of these Native American tribes is exempt from sales tax. An exemption certificate or purchase order from the tribal council is sufficient proof of the exempt sale. (2) Sales made by a tribal council or a business owned by a tribal council of these Native American tribes within the boundaries of the reservation are exempt from sales tax if: (A) the taxable item being sold is made by a member of the tribe; and (B) the taxable item is a cultural artifact of the tribe. (3) Sales made off the reservation or sales made on the reservation of items that are not cultural artifacts are taxable. (l) Bordering states and governmental units of states that border Texas. (1) The State of Arkansas, State of Louisiana, State of New Mexico, and State of Oklahoma, or a governmental unit of any of those bordering states may qualify for exemption on the purchase, lease, or rental of taxable items, but only to the extent that the bordering state or governmental unit of the bordering state exempts or does not impose a tax on similar sales of items to the State of Texas or a political subdivision of the State of Texas. (2) A bordering state or a governmental unit of a bordering state may enter into a reciprocal agreement with the comptroller for the exemption of taxable items purchased, leased, or rented to the State of Texas or a political subdivision of the State of Texas. (3) The purchase, lease, or rental of a taxable item to a bordering state or a governmental unit of a bordering state is exempt from sales tax to the extent allowed under the terms of the reciprocal agreement. An exemption certificate from a qualifying bordering state or a governmental unit of a bordering state is sufficient proof of the exempt sale.
|Source Note: The provisions of this §3.322 adopted to be effective January 1, 1976; amended to be effective October 10, 1976, 1 TexReg 2669; amended to be effective September 15, 1977, 2 TexReg 3392; amended to be effective November 17, 1981, 6 TexReg 4065; amended to be effective February 6, 1984, 9 TexReg 414; amended to be effective November 19, 1984, 9 TexReg 5717; amended to be effective June 18, 1986, 11 TexReg 2553; amended to be effective September 10, 1991, 16 TexReg 4681; amended to be effective September 19, 1996, 21 TexReg 8734; amended to be effective June 20, 2000, 25 TexReg 5915; amended to be effective December 2, 2002, 27 TexReg 11160; amended to be effectiveJuly 19, 2011, 36 TexReg 4568