What Texas sales-tax exemptions applied to sales by Boy Scout troops?

Plain-English summary

The Comptroller said all branches of the Boy Scouts of America had qualified as educational organizations. On that basis, each could hold one tax-free sale per year under Rule 3.322(g)(2).

The letter also said Rule 3.293(c)(2)(C) exempted a nonprofit educational organization from collecting tax on sales of food items, including soft drinks and candy. A seller could accept an exemption certificate instead of tax. If a sale did not satisfy those criteria, the seller could accept a properly completed resale certificate instead of tax.

Common questions

How many general tax-free sales did the letter allow? One day each year for an educational organization.

Did the food-sale treatment include soft drinks and candy? Yes. The letter expressly included them in the food items covered by the cited nonprofit educational-organization rule.

What documentation could a seller accept? An exemption certificate for the qualifying exempt sale, or a properly completed resale certificate when applicable.

Citations and references

• 34 Tex. Admin. Code Rule 3.322(g)(2) — one-day tax-free sale discussed in the letter.
• 34 Tex. Admin. Code Rule 3.293(c)(2)(C) — food sales by nonprofit educational organizations.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8604L0714E14

Original ruling text

April 11, 1986

Gentlemen:

This letter is in response to our telephone conversation concerning sales
made by Boy Scout Troops.

All branches of the Boy Scouts of America have qualified as educational
organizations. As an educational organization they are allowed to have a
one day tax free sale each year. Refer to Rule 3.322 (g)(2) enclosed. Also
Rule 3.293 (c)(2)(c), enclosed, exempts a non-profit educational organization
from collecting tax on sales of food items which include soft drinks and candy.
An exemption certificate may be accepted from them, in lieu of tax.

If the sale does not meet the above criteria, you may accept a properly
completed resale certificate, in lieu of tax.

Enclosed are several resale and exemption certificates.

If you have any questions or need more information, please call us at
1-800-252-5555 toll free from anywhere in Texas. You may write us at the
Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division