How did title passage, export documentation, and storing goods in Texas affect resale certificates and sales-tax refunds for exported property?

Plain-English summary

The letter said a purchaser could not issue a resale certificate merely for items intended for resale beyond U.S. territorial limits.

If title passed to the purchaser while the goods were still inside the United States, the purchaser could issue a resale certificate to its supplier. If title passed only after export, the purchaser could not issue the certificate, and the supplier collected tax at the time of sale. The supplier could refund that tax only when the purchaser supplied the export documentation required by Rule 3.323.

Storing the property in Texas before export was a taxable use. No refund was allowed when the goods remained in Texas more than one month from the purchase date.

Common questions

Could intended foreign resale alone support a resale certificate? No.

When could the purchaser issue one? When title transferred within the United States.

What documentation supported a supplier refund? The export proof required by Rule 3.323.

What if the goods stayed in Texas longer than one month? No refund was allowed.

Citations and references

• 34 Tex. Admin. Code Rule 3.323 — imports, exports, and documentation.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8605L0739D09

Original ruling text

May 20, 1986

Dear ***:

Thank you for your letter of May 12, 1986 concerning export
documentation as required by Rule 3.323 Import and Exports.

A resale certificate may not be issued for items purchased for resale
beyond the territorial limits of the United States. If title to the
goods is transferred to the purchaser while the goods are within the
United States, you may issue a resale certificate to your supplier. If
title does not transfer until after the goods are exported, you may not
issue a resale certificate. Your supplier must collect tax from you at
the time of sale to you. Unless you provide export documentation as
outlined in Ride 3.323 he can not refund the tax to you.

Storing property in Texas prior to exporting the property is a taxable
use of the property in Texas. No refund of tax is allowed for property
remaining in Texas longer than one month from date of purchase.

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

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