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Ezel / Tax Rulings / TX
TX 8411L0603B04 Sales and/or Use Tax (State,Local,MTA) 1984-11-09

Could a Texas school buy award jackets tax-free either to present to students or to resell to them?

Short answer: Yes. A school could use an exemption certificate for jackets presented to students. For jackets sold to students, it used a resale certificate and had to collect and remit tax on the student sales.

Apply this to your situation

This page answers the general question as of 1984. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1984
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Texas Comptroller said a school could purchase award jackets tax-free when it would present them to students. The school had to give its supplier an exemption certificate instead of tax.

If the school bought jackets to sell to students, it had to give the supplier a resale certificate. The school then had to collect tax on the student sales and remit it to the Comptroller's Office.

What this means for you

Schools

The certificate depended on the jacket's intended disposition: presentation to a student or resale to a student.

School vendors

The supplier could receive an exemption certificate for presented award jackets or a resale certificate for inventory the school would sell.

Accountants and tax professionals

For resale transactions, retain both the purchase certificate and records of tax collected and remitted on student sales.

Common questions

Q: Could a school buy award jackets tax-free to present to students?
A: Yes, with an exemption certificate.

Q: Could a school buy jackets tax-free for resale?
A: Yes, with a resale certificate.

Q: Did the school collect tax when it sold a jacket to a student?
A: Yes.

Citations and references

  • The letter cites no statute or administrative rule.

Source

Original ruling text

November 9, 1984

Dear **:

Thank you for your recent letter concerning the taxability of award
jackets.

A school may purchase award jackets to be presented to students tax free.
You must sign an exemption certificate with your supplier, in lieu of tax.
If the school is selling the jackets to the students, a resale certificate
must be signed and the school is required to collect tax on the sales and
remit the tax to the Comptroller's Office.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact me if you have additional questions. You may
write me, or call toll free 1-800-252-5555 from anywhere in Texas or
phone 512/475-1931.

Sincerely,

Dot Burchard
Tax Policy Section
Tax Administration Division

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