Texas Sales Tax Exemption Certificate Instructions

By Linda Richard
Texas has state sales tax exemptions for qualified organizations.

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Texas collects more than 60 separate fees, taxes and assessments through the Texas Comptroller of Public Accounts, and these taxes generate more than 77 billion dollars for the budget. Texas law provides liberal exemptions from taxes for tax-exempt organizations registered with the state. Charitable organizations, homeowner's associations, religious organizations and educational organizations are a few that may qualify for exemptions under Texas tax law. Qualification on behalf of the organization requires application to the Texas Comptroller's Office. Once the organization receives approval, you can use exempt status to make purchases without paying state taxes by completing a certificate at the time of purchase.

Review the guidelines for tax-exempt status, publication 96-1045.

Complete the application form for an exemption in Texas. The form is specialized for the different kinds of tax-exempt organizations. Make application in the organization's name. You will need the earliest date the organization provided services, and any federal employer identification number the organization has.

Add the documentation required. The Comptroller's Office requires clear and convincing evidence that the organization qualifies for tax-exempt status. The documentation varies with the type of organization requesting the exempt status. If your organization has a federal exemption, an IRS determination letter dated within the last four years is required. Charitable organizations must provide a two-year budget, charges for charitable services and how the charges are calculated, an application form for the charitable services and any brochures or website address that describes the activities of the organization. Provide copies of articles of incorporation or bylaws too.

Send the completed application and all documentation to Comptroller of Public Accounts, Exempt Organizations Section, P. O. Box 13528, Austin, TX 78711-3528.

Wait for contact by the Comptroller's Office within 10 working days of receipt of the application.

Complete the certificate for exempt status when you make a purchase after receipt of approval from the Texas Comptroller's Office. This form is available online, but most retail outlets require that you bring the form with you or complete a form at the store before you can make purchases without paying state sales tax. Complete the name and address of the organization, name of the seller, the purchases made and the reason for claiming an exemption. The purchaser must sign and date the certification, but unlike the resale certificate, no number is required.

About the Author

Linda Richard has been a legal writer and antiques appraiser for more than 25 years, and has been writing online for more than 12 years. Richard holds a bachelor's degree in English and business administration. She has operated a small business for more than 20 years. She and her husband enjoy remodeling old houses and are currently working on a 1970s home.

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