How did a Methodist church document its Texas sales-tax exemption for purchases, including parsonage bills?

Plain-English summary

The Methodist church asked whether its exemption covered parsonage bills, including city utilities, telephone service, and cable television.

The Comptroller responded that all branches of the Methodist Church qualified for exemption under Rule 3.322(c)(3). Texas did not issue numbers to exempt entities. When the church made a purchase, it gave the vendor an exemption certificate, and the certificate did not require a number.

What this means for you

The historical response focused on how the church documented its exemption. It did not separately classify each utility or communications service named in the church's request.

Common questions

Did Texas issue the church an exemption number? No.

What did the church give vendors? An exemption certificate.

Did the certificate require a number? No.

Citations and references

• 34 Tex. Admin. Code Rule 3.322(c)(3) — historical exempt-organizations provision.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8801L0851B05

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller January 26, 1988

Dear **:

On behalf of Mr. Bullock, I hope you'll accept my apology for the delay
in
answering your question regarding all branches of the Methodist Church
qualify for an exemption from the state sales tax. The exemption is in
Rule 3.322 Exempt Organizations section (c)(3). This isn't the way we
normally do business.

Our people were, and still are, swamped by a deluge of inquiries as they
attempted to interpret provisions of the new law and draft rules which
would
not adversely impact businesses. In many instances, an answer to a
question
just wasn't available when the question arrived.

We do not issue numbers to exempt entities. When purchases are made by
your
church, issue the vendor an exemption certificate. This certificate does
not
require a number.

I am enclosing, under separate cover, a copy of Rule 3.322 and some
exemption
certificates.

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
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at Telephone Bank Operations.

Sincerely,
Raul Cruz
Telephone Bank Operations

October 28, 1987

Sales Tax Office
PO. Box 13528
Austin, Texas 78711

Attn: Sales Tax Policy Division

Dear Sir:

*** Methodist Church, a religious organization, has a tax
identification number which exempts us from paying any sales tax.
We own our church parsonage and pay the utilities for the parsonage,
including city utilities, telephone service, cable television service,
etc. Our interpretation of the tax exemption law is that we are
exempt from paying sales taxes on the bills we pay for the parsonage;
however, some of the businesses are taking exception to that
interpretation.

We would like to request the correct interpretation of the law, so
that we may act accordingly.

Thank you for your time.

Sincerely,