As of 2000, would the Texas Comptroller accept a web-based resale certificate signed with an electronic signature or a digital signature?

Plain-English summary

This 2000-era e-mail chain shows a business owner setting up a website to sell mainly to wholesalers (and sometimes individuals) trying to figure out whether they could post a resale certificate online for customers to fill out digitally, citing a claim that "the Supreme Court recently ruled that digitally signed documents are legally binding" and pointing to Tax Code § 151.152. The exchange took several rounds to sort out terminology confusion between "digital signature" and "electronic signature" — the Comptroller's representative initially noted the Tax Code doesn't actually reference either term by name.

The Comptroller ultimately explained the distinction and gave a clear rule for the time: an electronic signature has two parts — a visible, captured image of the handwritten signature, and an unseen "digital fingerprint" code that ties the signature to the exact text as it existed at the moment of signing. The office would accept a resale/exemption certificate bearing an electronic signature, PROVIDED the form and signature were printable. A digitally signed certificate, by contrast, was NOT accepted at that time, because that format was understood not to be printable — though the letter notes the subject was under active review by the agency even then.

Currency note: This is a 2000-era letter about e-signature acceptance practices, a fast-moving procedural area. The letter itself flags that its own "digital signature not accepted" position was under review at the time, which strongly suggests policy has evolved in the 25+ years since. Do not rely on this letter for current e-signature or digital-signature practices — confirm directly with the Comptroller's office what signature formats are accepted for resale/exemption certificates today.

What this means for you

Businesses building e-commerce resale/exemption certificate workflows

This letter illustrates the historical distinction the Comptroller drew between a "printable" electronic signature (a captured handwritten-signature image plus a hidden verification code) and a "digital signature" format that wasn't printable — but treat this as historical context only, not current guidance, given how much e-signature technology and Comptroller practice has likely changed since 2000.

Accountants and tax professionals researching e-signature history

This letter is useful primarily as a historical marker of when and how the Comptroller first grappled with electronic resale certificates, not as current operative guidance — always verify present-day acceptance practices before advising a client.

Common questions

Q: Did the Texas Comptroller accept digitally signed resale certificates in 2000?
A: No — at that time, the office did not accept a digitally signed resale/exemption certificate, because the format was understood not to be printable, though the policy was under review.

Q: What WAS accepted in 2000?
A: A resale/exemption certificate bearing a printable electronic signature — a visible captured handwritten-signature image combined with a hidden digital verification code.

Q: Is this letter still accurate today?
A: Likely not in its specifics — the letter itself notes the policy was under review even in 2000; confirm current e-signature/digital-signature acceptance practices directly with the Comptroller.

Q: Can other businesses rely on this exact letter?
A: No. This is a Texas STAR letter ruling binding on the Comptroller only for the taxpayer it addresses (34 Tex. Admin. Code Rules 3.1, 3.10), and it's additionally dated on a fast-evolving procedural topic; confirm current practice with a tax professional.

Citations and references

Statutes:

• Tex. Tax Code § 151.152 (resale/exemption certificate requirements)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200008622L

Original ruling text

August 25, 2000

From: Bettie Peterson
To:
Subject: digital or electronic signature

This is in response to your request for a definition of an electronic
signature.

An electronic signature has two components: one that is seen and one that is
not seen. Seen is the captured image of the handwritten signature. Not seen
is the set of code or 'digital fingerprint' that identifies the signature with
the exact text created at the moment of signing.

I hope this satisfactorily answers your questions. Please feel free to contact
me again if you have additional questions.

On Thu, 24 Aug 2000 15:32:46 -0500 **
wrote:

Thank you for your prompt response.

Would you please define what is an electronic signature?

Thank you again for your help.

August 24, 2000

From: Bettie Peterson
To:
Subject: digital or electronic signature

This office will accept a resale/exemption certificate with an electronic
signature if the form and signature are printable.

As I mentioned in my earlier email, the comptroller's office does not currently
accept a digitally signed resale/exemption certificate. It is our understanding
that this form and signature are not printable. However, the subject is
currently being reviewed by this agency.

I was thinking they are the same. Which type of signature will your office
accept? We can do whatever we can to comply with the rules.

Please advise.

From: Bettie Peterson [mailto:[email protected]]
Sent: Thursday, August 24, 2000 1:43 PM
To:
Subject:

In your first email you ask about digital signatures. Today's email you refer
to electronic signatures. Texas Tax Code 151.152 does not reference electronic
or digital signatures.

It appears we are miscommunicating concerning these two terms. Please advise
which type of signature you are inquiring about.

On Thu, 24 Aug 2000 09:02:50 -0500 **
wrote:

Dear Ms. Peterson:

Thank you for your prompt response.

This is the info I found in the Texas Tax Code Section 151.152. It seems that
the Comptroller's Office will accept a resale certificate that contains an
electronic signature providing that the resale certificate is printable along
with the signature....

It is contradicting what I learned from you. And I am confused....

Would you please clarify the matter?

Thank you for your help.

From: Bettie Peterson [mailto:[email protected]]
Sent: Thursday, August 24, 2000 8:48 AM
To:
Subject: digitally signed email

Thank you for your recent email concerning digitally signed documents.

At this time, the comptroller's office does not accept a digitally signed
resale/exemption certificate. However, the subject is currently being reviewed
by this agency.

Referenced rules are available at
.

The State Tax Automated Research system, that provides viewing and downloading
of rules, edited letter rulings, hearings, AG Opinions, etc., may be accessed
on the Internet at http://www.window.state.tx.us/.

This opinion is based on the facts you submitted and current law. Other facts,
though similar, may result in different answers.

If you have questions or need more information, I will be glad to help you.
You may call me toll free from anywhere in the United States at 1-800-531-5441,
extension 5-0330.

On Fri, 18 Aug 2000 15:19:40 -0500 **
wrote:

Dear Sir/Madam:

We are in the process of setting up a web site for our products to sell on the
internet. We are selling mainly to wholesalers but sometimes individuals. We
would like to put the resale certificate on the web for our customers to fill
out.

My questions: Will the Comptroller Office accept this kind of digitally signed
Resale certificate?

According to our MIS director, he said the Supreme Court recently ruled that
digitally signed documents are legally binding......

Thank you for your help.

I look forward to hearing from you.