| (2) If the shipping and handling charge is a flat rate
per package and the amount charged is the same regardless of how many
items are included in the package, for purposes of this exemption
the total charge may be attributed to one of the items in the package
rather than proportionately and separately allocated between the items.
For example, a customer orders five shirts, with four priced at $98
and one at $85. The retailer charges $10 for shipping and handling
the order. The retailer would have charged the same amount for shipping
and handling whether the customer ordered one shirt or five shirts.
The retailer may choose to attribute the $10 shipping and handling
charge to the shirt that was sold for $85 rather than allocate the
charge proportionately and separately between the shirts. If the charge
is attributed to the $85 shirt, the sales price of that shirt is $95,
and all of the shirts will qualify for the exemption.
(o) Documenting exempt sales.
(1) Except as provided in paragraphs (2) and (3) of
this subsection, a retailer is not required to obtain an exemption
certificate on sales of eligible items during the exemption period;
however, the retailer's records should clearly identify the type of
item sold, the date on which the item was sold, and the sales price
of the item.
(2) A retailer who sells more than 10 backpacks to
a customer at the same time must obtain an exemption certificate from
the customer verifying that the backpacks are being purchased for
use by elementary or secondary school students.
(3) If the purchaser is buying the school supplies
under a business account, the retailer must obtain an exemption certificate
from the purchaser certifying that the items are purchased for use
by an elementary or secondary school student. "Under a business account"
means the purchaser is using a business credit card or business check
rather than a personal credit card or personal check; is being billed
under a business account maintained at the retailer; or is using a
business membership at a retailer that is membership based.
(p) Reporting exempt sales. No special reporting procedures
are necessary to report exempt sales made during the exemption period.
Sales should be reported as currently required by law.
|
| Source Note: The provisions of this §3.365 adopted to be effective September 7, 2000, 25 TexReg 8740; amended to be effective April 13, 2005, 30 TexReg 2085; amended to be effective October 6, 2008, 33 TexReg 8398; amended to be effective November 23, 2009, 34 TexReg 8338; amended to be effective December 3, 2012, 37 TexReg 9525; amended to be effective March 3, 2014, 39 TexReg 1479 |
