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Ezel / Tax Rulings / TX
TX 8710L0841A05 Sales and/or Use Tax (State,Local,MTA) 1987-10-07

Did Texas require a bond from a political subdivision or municipality acting as a tax collector for the first time?

Short answer: No. The Comptroller said political subdivisions and municipalities would not be required to post a bond when they were first-time collectors.

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 is an October 1987 Texas Comptroller Executive Counsel response about bond requirements for first-time tax collectors that are political subdivisions or municipalities. The letter cites no statute, rule, duration, or broader class of governmental entity. Its administrative policy is historical; verify current bonding and collection requirements. STAR documents may no longer represent current policy even when not marked superseded. The requester's identity is 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

Texas would not require a bond when a political subdivision or municipality became a tax collector for the first time. Executive Counsel said the decision followed discussion with another Comptroller official and granted the requested waiver.

What this means for you

The letter is limited to first-time collectors that are political subdivisions or municipalities. It does not state a rule for private collectors, repeat collectors, or other bond requirements.

Common questions

Did first-time municipalities need a collector bond? No under this letter.

Did the answer also cover political subdivisions? Yes.

Does the letter cite the bond statute or rule? No.

Citations and references

  • No statute or rule number is cited in the ruling text.

Source

Original ruling text

Bob Bullock
Comptroller of Public Accounts
Austin, Texas 78774

October 7, 1987

Dear ***:

On September 24, 1987, you asked if we would consider waiving the bond
requirement for first time collectors, specifically on political
subdivisions and municipalities.

After discussing this with Jack Roberts, it has been concluded no bond
will be required of political subdivisions and municipalities if they
are first time collectors.

I am happy we are able to comply with your request. Should you have any
further questions, please feel free to contact me.

Sincerely,
Wade Anderson
Executive Counsel

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