| (4) At any time, the person who purchased tangible
personal property or a taxable service under a valid exemption certificate
and is using the tangible personal property or taxable service in
a divergent taxable manner may stop paying tax on the value of tangible
personal property or taxable service and instead pay sales tax on
the original purchase price. When the person elects to pay sales tax
on the purchase price, credit will not be allowed for taxes previously
paid based on value.
(5) Sales tax is not due when a taxable item purchased
under a valid exemption certificate is donated to an organization
exempt from tax under Tax Code, §151.309 or §151.310(a)(1)
or (2), provided the purchaser does not use the donated tangible personal
property or the donated taxable service.
(6) This subsection is not applicable when an item
purchased under Tax Code, §151.318 (Property Used in Manufacturing)
is used in a taxable manner. A purchaser who uses such items in a
taxable manner is liable for sales or use tax and should refer to §3.300
of this title (relating to Manufacturing; Custom Manufacturing; Fabricating;
Processing).
(f) Content of an exemption certificate. An exemption
certificate must show:
(1) the name and address of the purchaser;
(2) a description of the item to be purchased;
(3) the reason the purchase is exempt from tax;
(4) the signature of the purchaser and the date; and
(5) the name and address of the seller.
(g) Purchases of taxable items by agents of the Federal
Deposit Insurance Corporation (FDIC). The FDIC may purchase items
tax-free for use in operating a property or business to which it has
title. An exemption certificate may be issued by the FDIC or by persons
acting as agents for the FDIC when purchasing items that are incorporated
into or used on the property or business being managed. The certificate
must state that the purchases are being made by or for the FDIC. The
FDIC or persons managing property or a business for the FDIC may issue
an exemption certificate when:
(1) the FDIC provides documentation to the person managing
the property or business showing that title to the property or business
being managed was transferred to the FDIC; and
(2) the FDIC has entered into a written agreement with
the person managing the property or business that designates that
person as its agent and authorizes that person to make purchases on
its behalf. The agreement must be in the person's files for review
by the comptroller. It is not necessary to provide a copy of the agreement
to suppliers.
(h) Form of an exemption certificate. An exemption
certificate must be in substantially the form of a Texas Sales and
Use Tax Exemption Certification, Form 01-339 (Back). Copies of the
form may be obtained from the Comptroller of Public Accounts, Tax
Policy Division or by calling 1-800-252-5555. The form is also available
online at https://comptroller.texas.gov/forms/01-339.pdf.
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| Source Note: The provisions of this §3.287 amended to be effective November 18, 1981, 6 TexReg 4064; amended to be effective November 19, 1984, 9 TexReg 5717; amended to be effective November 24, 1987, 12 TexReg 4198; amended to be effective February 19, 1990, 15 TexReg 657; amended to be effective September 10, 1991, 16 TexReg 4681; amended to be effective December 28, 1993, 18 TexReg 9312; amended to be effective February 7, 1996, 21 TexReg 599; amended to be effective May 14, 2018, 43 TexReg 3100; amended to be effective April 26, 2022, 47 TexReg 2293 |
