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Texas Exemptions on Purchases by Out-of-State Schools

  • Sep 24, 2012 | Gail Cole

Texas allows sales tax exemptions on purchases made by "out-of-state public universities, colleges, junior colleges, community colleges, school districts and their respective schools" based on their status as educational organizations. The same is true for out-of-state nonprofit private schools. This is a topic in the September, 2012, issue of the Texas Comptroller's newsletter.

Educational institutions interested in qualifying for the exemption must complete an educational application.

Out-of-state educational organizations "may make tax-free purchases of goods and services that further its exempt purpose" so long as the seller is given a properly completed exemption certificate to document the sale.

Exemptions may be claimed only for purchases made "on behalf of the organization." Exemptions from sales tax may not be claimed for "taxable items of a personal natureā€¦ ," even by an authorized agent.

Sellers in Texas are not required to accept exemption certificates and may instead collect the sales tax. In this instance, the educational organization or its authorized agent may request an Assignment of Right to Refund.

Texas Hotel Occupancy Tax

"Independent school districts, public and nonprofit private elementary and secondary schools from other states and nations who qualify for exemption from Texas sales and use tax as educational organizations also qualify for Exemption from Texas hotel occupancy tax."

Motor Vehicle Rentals

Only Texas public schools are eligible for motor vehicle rental tax exemptions in Texas.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.