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Ezel / Tax Rulings / TX
TX 9105L1110C14 Sales and/or Use Tax (State,Local,MTA) 1991-05-20

Could restaurants buy disposable paper placemats tax-free with a Texas resale certificate?

Short answer: Yes. Nonreusable placemats furnished to customers could be purchased for resale whether they were plain, decorative, or carried advertising.

Apply this to your situation

This page answers the general question as of 1991. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1991
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 official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
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

A seller asked about disposable paper placemats sold to restaurants.

The Comptroller said a restaurant could purchase nonreusable placemats tax-free by issuing a resale certificate. The result was the same whether the placemats were plain, decorative, or printed with advertising.

What this means for you

For the disposable placemats described, furnishing them to restaurant customers supported resale treatment. Their design or advertising content did not change the result.

Common questions

Which items did the body of the letter address? Disposable paper placemats sold to restaurants.

Could the restaurant issue a resale certificate? Yes.

Did decorative printing change the treatment? No.

Did advertising on the placemat change the treatment? No.

Citations and references

  • 34 Tex. Admin. Code Rule 3.293(f)(4) — nonreusable items furnished to customers

Source

Original ruling text

May 20, 1991

Dear **:

Thank you for your recent letter regarding the taxability of
disposable paper placements sold to restaurants.

The disposable paper placements sold to your customers may be
purchased tax free by issuing a resale certificate. Non-reusable
placements provided to customers whether they are plain, decorative
or have advertising may be purchased tax free with a resale
certificate from your customers. See the enclosed Rule 3.293(f)(4).

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, you may call
me toll free at 1-800-531-5441, extension 5-0330. The regular
number is 512/463-4600, or write Tax Administration Division.

Sincerely,

Bettie U. Peterson
Tax Administration Division

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