Ezel / Tax Rulings / TX
TX 8504L0633B06 Sales and/or Use Tax (State,Local,MTA) 1985-04-02

Could a foreign buyer obtain a Texas sales-tax refund by proving promptly that purchased goods cleared U.S. Customs?

Short answer: Possibly, at each retailer's option. Tax was due when taxable goods were transferred in Texas, but a retailer could refund it and seek reimbursement if the buyer proved the same goods cleared U.S. Customs within seven days and supplied the letter, invoice, and customs proof.

Apply this to your situation

This page answers the general question as of 1985. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1985
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

The letter said sales tax was due on taxable items transferred to individuals in Texas, even when the buyer planned to take the goods to a home country.

If the buyer proved the purchased items cleared U.S. Customs within one week of purchase, the individual retailers could choose to refund the tax and apply to the Comptroller for their own refund. The letter did not say the buyer could compel a retailer to do so.

The buyer had to give each retailer a copy of the ruling letter, a sales invoice clearly identifying the exact merchandise, and proof that the same merchandise cleared U.S. Customs within seven days of purchase.

Common questions

Was foreign citizenship alone enough to avoid tax at the sale? No. Was the retailer required to refund the tax? No; the letter said the retailer could do so at its option. What timing did the letter require? Customs clearance within seven days of purchase.

Citations and references

The reproduced letter cites no numbered statute or rule.

Source

Original ruling text

April 2, 1985

Dear ***:

Thank you for your recent letter regarding goods purchased by you in
Texas and removed thru U.S. Customs to your home country.

Sales tax is a transaction tax and is due on taxable items transferred to
individuals in this state. However, if you can produce proof that the
items purchased cleared U.S. Customs within a week of their purchase,
the individual retailers may at their option refund your tax and apply to
us for a refund.

You should supply them with a copy of this letter, a copy of the sales
invoice clearly showing the exact merchandise and a copy of your proof
that this same merchandise cleared U.S. Customs within seven days of
its purchase.

If you have any questions or need more information, please call us at
1-800-252-5555 toll free from anywhere in Texas.You may write us at the
Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division

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