Is a regional education service center exempt from Texas sales and use tax the same way a school district is, and does that exemption extend to the center's employees?

Plain-English summary

Someone asked the Comptroller about a specific regional education service center's ("SERVICE REGION") Texas sales and use tax status. The Comptroller confirmed: SERVICE REGION, and all other regional education service centers, are exempt from paying Texas sales and use taxes.

The legal basis: Tex. Educ. Code § 8.005 provides that a regional education service center and its employees "are subject to or exempt from taxation in the same manner as a school district and school district employees." School districts themselves are exempt from sales and use tax under Tex. Tax Code § 151.309(5). But that exemption does not extend personally to the individual employees — school district employees, like United States and State of Texas employees generally, are not exempt from paying sales and use taxes on their own purchases under § 151.309(5).

What this means for you

Regional education service centers

Your center is exempt from Texas sales and use tax on its own institutional purchases, the same as any Texas school district, under Tex. Educ. Code § 8.005 tying your tax status directly to school districts.

Employees of education service centers and school districts

Don't assume your employer's exemption extends to you personally — just like government employees generally, you still pay sales tax on your own individual purchases even though your employer is tax-exempt.

Accountants and tax professionals

A clean confirmation that Tex. Educ. Code § 8.005's "same manner as a school district" language sweeps in the full school-district exemption package (institutional exemption under § 151.309(5)) but also imports the same personal-employee non-exemption — useful when advising education service centers or their staff on purchasing procedures.

Common questions

Q: Are regional education service centers exempt from Texas sales tax?
A: Yes, they're treated the same as school districts for tax purposes under Tex. Educ. Code § 8.005, and school districts are exempt under Tex. Tax Code § 151.309(5).

Q: Are employees of an education service center personally exempt from sales tax?
A: No. Just like school district employees and U.S./Texas government employees generally, individual employees still pay sales and use tax on their own purchases.

Q: Can I rely on this letter for my own organization's tax status?
A: No. This opinion is based on the facts presented; additional or different facts may change the opinion.

Citations and references

Statutes:

• Tex. Educ. Code § 8.005 (regional education service centers — taxed same as school districts)
• Tex. Tax Code § 151.309(5) (school district sales and use tax exemption; does not extend to individual employees)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200003131L

Original ruling text

March 23, 2000

Dear **:

Thank you for your recent letter concerning SERVICE REGION's Texas sales and
use tax status.

SERVICE REGION and all other regional education service centers are exempt from
paying Texas sales and use taxes.

Section. 8.005, Chapter 8 of the Education Code states: "A regional education
service center and its employees are subject to or exempt from taxation in the
same manner as a school district and school district employees." School
districts are exempt from payment of sales and use tax under Texas Tax Code
Section 151.309(5). School district employees, like United States and State of
Texas employees, are not exempt from payment of sales and use taxes under Texas
Tax Code Section 151.309(5).

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

You may call me toll free at 1-800-531-5441, extension 3-4683, if you have any
questions or need more information. You may write to Comptroller of Public
Accounts, P.O. Box 13528, Austin, Texas 78711-3825.

Sincerely,

Eddie C. Washington
Tax Policy Division