| (A) When a governmental body is required to furnish
a copy of any document under the Open Records Act, the transaction
is not considered the sale of a taxable item. Sales tax is not due
on any fee charged by the governmental body for furnishing one or
more copies, regardless of whether the copies are certified or the
fee is established by statute, ordinance, public official, or state
(B) Sales tax is not due on the fee charged by a governmental
body for furnishing a copy or copies of a document not open to public
inspection to a person who is authorized to obtain a copy or copies
of such document. For example, sales tax is not due on the fee charged
by a college for furnishing a student's academic transcript to the
student or on the fee charged by the Department of State Health Services
for furnishing a person a copy of the person's birth certificate.
(C) Unless such sales are otherwise exempt, sales tax
is due on sales of regular publications, records, or general information
by a governmental body, even though such publications, records, or
information may be open or available to the public by statute. For
example, textbooks sold by a state university and magazine subscriptions
sold by a state agency are taxable. See §3.299 of this title.
(D) Sales tax collected by state agencies must be remitted
in accordance with comptroller accounting requirements.
(i) Organizations that do not qualify for exempt status.
Examples of organizations that cannot qualify for exempt status include
professional groups, certain mutual benefit or social groups, and
political, trade, business, bar, or medical associations. However,
certain sales by certain organizations may be exempt. For information
on exempt sales by senior citizens' organizations, student organizations
affiliated with a college or university, or nonprofit animal shelters,
see §3.316 of this title (relating to Occasional Sales; Joint
Ownership Transfers; Sales by Senior Citizens' Organizations; Sales
by University and College Student Organizations; and Sales by Nonprofit
(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
(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
(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
(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 beeffective July 19, 2011, 36 TexReg 4568; amended to be effective December 29, 2015, 40 TexReg 9724