Would the proposed standardized certificate qualify as a Texas resale certificate, an exemption certificate, or both?

Plain-English summary

The proposed standardized form was acceptable as a Texas resale certificate even though it did not use the exact format shown in Rule 3.285.

It was not acceptable as an exemption certificate. Texas required the certificate to state why the purchase was exempt, while the submitted form had no space for that reason. The letter also noted that an exemption certificate did not require a sales tax permit number.

The Comptroller said the form could serve both purposes if it added a checkbox identifying the certificate type and a space for the exemption reason.

Common questions

Did the form have to match Texas's resale-certificate format exactly? No. The letter accepted the differently formatted form as a resale certificate.

Why did it fail as an exemption certificate? It did not provide a place to state the reason for exemption.

How could the form work for both uses? Add a certificate-type checkbox and a field for the exemption reason.

Citations and references

• 34 Tex. Admin. Code Rule 3.285 (Resale Certificate; Sales for Resale)
• 34 Tex. Admin. Code Rule 3.287 (Exemption Certificates)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9003L1042C13

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

BOB BULLOCK
Comptroller March 23, 1990

Dear **:

Thank you for your letter concerning a standardized resale/exemption
certificate. I have enclosed Rules 3.285, Resale Certificate; Sales
for Resale and 3.287, Exemption Certificates. Please note these are
separate forms with different requirements.

Although your form is titled " ... Sales Tax Exemption Certificate,"
it does not qualify as an exemption certificate for Texas. An exemp-
tion certificate must include the reason the purchase is exempt and
it does not require a sales tax permit number. Your form does not in-
clude a space for the exemption reason.

Your form is not in the same format as given in Rule 3.285, but it
will qualify as an acceptable resale certificate.

Adding a check box for the type of certificate and a space for the
reason for exemption would make this form acceptable as both a resale
and exemption certificate.

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 our
toll-free number 1-800-252-5555. The regular number is 512/463-4600.
You may write me at Tax Correspondence, Comptroller of Public Accounts.

Sincerely,
Julie Pesl
Tax Correspondence