Were Alcoholics Anonymous writings and pamphlets sold by an Intergroup subject to Texas sales tax?

Plain-English summary

Writings, pamphlets, and literature that the AA Intergroup both published and distributed were exempt as of August 28, 1989. Public sales of other publications were taxable unless another qualified organization produced them.

Other AA groups could buy otherwise taxable items for exempt use or resale with the appropriate certificate.

What this means for you

The exemption depended on who published and distributed the writing, not simply on AA affiliation.

Common questions

Were the Intergroup's own writings exempt? Yes. Were all public publication sales exempt? No.

Citations and references

• Comptroller Rule 3.299(d).

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9008L1033D13

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

BOB BULLOCK
Comptroller August 7, 1990

Dear ***:

Thank you for your letter concerning the taxability of publica-
tions sold by your client, *** of Alcoholics Anonymous
(Intergroup).

You stated that Intergroup distributes and sells Alcoholic Anony-
mous (AA) and recovery writings, pamphlets, and literature to the
various local AA groups and the public (but does not sell film,
video cassettes or computer software).

As of August 28, 1989, sales of writings, pamphlets, and litera-
ture that Intergroup publishes and distributes are exempt from
sales and use tax. This applies to sales to the public as well as
to AA Groups.

Intergroup must collect tax on sales to the public of any publica-
tions that are not published and distributed by Intergroup or
other qualified organizations as outlined in Rule 3.299(d). Sales
of taxable items to other AA Groups would not be taxable if: (1)
the items are for the organizations use and a valid and complete
exemption certificate is issued by the group; or (2) the items are
for resale and a valid and complete resale certificate is issued
by the group.

This opinion is based on the facts presented. if there are addi-
tional or different facts, the opinion may change.

If you have any questions or need additional information, you may
call Tax Assistance at 463-4600 or call me at 463-4666. You may
write to Tax Correspondence, Comptroller of Public Accounts.

Sincerely,
Jo Ann Dieck
Tax Correspondence