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Ezel / Tax Rulings / TX
TX 8610L0765C06 Sales and/or Use Tax (State,Local,MTA) 1986-10-07

Was clothing for foster children exempt when bought with a county voucher or later reimbursed by the county?

Short answer: A purchase made by the county was exempt, and its voucher sufficiently proved that status. But tax was due when another person bought the clothing and the county merely reimbursed that person.

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This page answers the general question as of 1986. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1986
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Clothing or other tangible personal property purchased by a county was not subject to sales tax. The Comptroller said a county voucher was sufficient proof that the county made the purchase.

The result changed if another person bought the clothing and the county later reimbursed that person. In that situation, sales tax was due on the purchase.

Common questions

Was clothing purchased by the county taxable? No.

Was the county voucher enough to document the exempt purchase? Yes.

What if an individual bought the clothing and received county reimbursement? Tax was due on that purchase.

Citations and references

  • The letter cited no numbered statute or Comptroller rule.

Source

Original ruling text

October 7, 1986

Dear ***:

Thank you for your letter of September 17, 1986, concerning tax on
clothing purchased for foster children with a voucher from the county.

Sales tax is not due on clothing or other tangible personal property
purchased by the county. The county voucher is sufficient proof that
the purchase is made by the county and should not be subject to tax.
However, if you purchase the clothing and the county reimburses you,
then tax is due on the purchase.

This opinion is based on the facts presented. If there are additional or
different facts, this 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. The regular number is
512/463-4600. You may write us at the Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division

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