🧪 TEST MODE ACTIVE Use test card: 4242 4242 4242 4242
Ezel / Tax Rulings / TX
TX 8705L0826A14 Sales and/or Use Tax (State,Local,MTA) 1987-05-27

Were $40 sales of a family-history book taxable when the buyers were only family members and friends?

Short answer: Yes. Family and friend sales were taxable sales of books. Supplier tax could be recovered for copies actually resold, while copies kept or given away remained taxable to the publisher.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
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 1987 Texas Comptroller letter addresses $40 sales of a family-history book, supplier tax paid on copies later resold, and copies kept or given away. Verify current publication, occasional-sale, resale, supplier-credit, use-tax, and local-tax rules. STAR documents may no longer represent current policy even when not marked superseded. The book title and taxpayer identity are redacted. This summary is informational only and is not legal or tax advice.
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 $40 sales of a family-history book were taxable even though the purchasers were family members and friends. The seller was still transferring taxable tangible personal property.

For copies actually sold, the seller could obtain a refund of sales tax paid to its suppliers. Copies that were not resold but instead given away or kept for the seller's own use were taxable to the seller.

What this means for you

Restricting a book's audience to relatives or friends did not change the tax treatment of a sale. The disposition of each copy mattered for supplier-tax recovery: resale copies were treated differently from copies consumed through gifts or personal retention.

Common questions

Were the $40 book sales taxable? Yes.

Did family or friend status make the purchase exempt? No.

Could the seller recover tax paid to suppliers? Yes, for the portion of books actually sold.

What about books given away or kept? Those copies were taxable to the seller.

Citations and references

  • Comptroller Rule 3.338 — Allowance of Credit for Tax Paid to Suppliers.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller May 27, 1987

Dear ***

Thank you for your letter of May 12, 1987 concerning the taxability of
your book titled ***, ** and ** Families.

Sales of the books to other family members for $40 each, are taxable.
You are selling taxable tangible personal property despite the fact that
family members and friends are the purchasers.

You may, obtain a refund of sales tax paid to your suppliers on the
portion of books actually sold. These books which are not resold, but
given away or kept for your own use are taxable to you. I have enclosed
a copy of Rule 3.338 Allowance of Credit for Tax Paid to Suppliers, for
your reference.

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 me at
1-860-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Administration Division.

Sincerely,
Julie Pesl
Tax Policy Section
Tax Administration Division

Get today's answer for your situation

You just read a 1987 ruling on this question. Ezel checks current Texas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.