| (4) the organization has not conducted more than four
separate fund-raising drives each calendar year for a total of not
more than 20 days per year.
(k) University and college student organizations.
(1) A sale of a taxable item by a qualified student
organization is exempt from sales tax if:
(A) the student organization sells the items at a sale
that lasts for one day only, and the primary purpose of the sale is
to raise funds for the organization;
(B) the student organization holds not more than one
fund-raising sale each calendar month for which the exemption is claimed;
(C) the student organization has as its primary purpose
a purpose other than being engaged in business or performance of an
activity that is designed to make a profit; and
(D) the sales price of the taxable item is $5,000 or
less, except that a taxable item that the organization manufactures
or has received by donation may be sold tax free during the one-day
sale, regardless of sales price, if the item is not sold to the donor.
(2) A taxable item acquired tax free under paragraph
(1) of this subsection is exempt from use tax on its storage, use,
or consumption until the item is resold or subsequently transferred.
(3) The first $5,000 of a qualified student organization's
total receipts from sales of taxable items in a calendar year that
are not exempted under paragraph (1) of this subsection are exempt
from sales tax.
(4) A qualified student organization must be affiliated
with an institution of higher education as defined by Education Code, §61.003,
or a private or independent college or university that is located
in this state and that is accredited by a recognized accrediting agency
under Education Code, §61.003. A student organization must file
with the comptroller a certification issued by the institution, college,
or university showing that the organization is affiliated with the
institution, college, or university. A college, university, or institution
may designate one of its departments or officers to compile a list
of registered or certified student organizations and submit the list
to the comptroller in lieu of having each student organization submit
individual certifications. The certification is valid until the institution,
university, or college notifies the comptroller that a student organization
is decertified, suspended, or otherwise loses its campus privileges
or affiliation with the institution, university, or college.
(l) Sales by religious, educational, charitable organizations,
and organizations classified as 501(c)(3), (4), (8), (10), or (19).
(1) A religious, educational, charitable, eleemosynary
organization, or an organization exempt under Internal Revenue Code, §501(c)(3),
(4), (8), (10), or (19) that has been granted exempt status by the
comptroller, and each bona fide chapter of an exempt organization,
is not required to collect sales tax on the sales price of taxable
items sold for $5000 or less at a sale or auction held by the organization
or chapter only twice a calendar year and each sale or auction lasting
only one day. See §3.322 of this title (relating to Exempt Organizations).
Additionally, a taxable item may be sold tax free during a one-day
tax-free sale or auction, regardless of price, if the item is one
that the organization manufactured or has received by donation and
the item is not sold to the donor.
(2) One day is a consecutive 24-hour period. If a designated
tax-free sale or auction exceeds a consecutive 24-hour period, the
organization or chapter may not hold another tax-free sale or auction
that calendar year. An organization or chapter may hold the two tax-free
sales or auctions consecutively, but the two tax-free sales or auctions
by that organization or chapter cannot exceed a maximum of 48 consecutive
hours in a calendar year.
(3) The organization may employ an auctioneer to conduct
the sale or auction and pay the auctioneer a reasonable fee not to
exceed 20% of the gross receipts.
(4) If two or more exempt organizations or chapters
jointly hold a tax-free sale or auction, each is considered to have
held a tax-free sale or auction during that calendar year. Each exempt
organization that participates in a joint one-day tax-free sale or
auction may hold one other tax-free sale or auction during the remainder
of that calendar year.
(m) Sales by nonprofit animal shelters. The sale, including
the acceptance of a fee for adoption, of an animal by a nonprofit
animal shelter is exempt from sales and use taxes. The term "animal
shelter" is defined in Health and Safety Code, §823.001, as a
facility that keeps or legally impounds stray, homeless, abandoned,
or unwanted animals.
|
| Source Note: The provisions of this §3.316 adopted to be effective January 1, 1976; amended to be effective April 12, 1977, 2 TexReg 1446; amended to be effective January 31, 1978, 3 TexReg 195; amended to be effective August 10, 1981, 6 TexReg 2693; amended to be effective December 24, 1984, 9 TexReg 6187; amended to be effective May 3, 1994, 19 TexReg 2959; amended to be effective May 17, 1996, 21 TexReg 3946; amended to be effective November 30, 2000, 25 TexReg 11665; amended to be effectiveMarch 20, 2002, 27 TexReg 2051; amended to be effective October 22, 2015, 40 TexReg 7242 |
