Ezel / Tax Rulings / TX
TX 8509L0678D08 Sales and/or Use Tax (State,Local,MTA) 1985-10-30

Was a contribution for placing a contributor's named brick in a public park walkway subject to Texas sales tax?

Short answer: No. The contributor received neither title nor possession of the brick, so the contribution was not a sale of tangible personal property.

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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 taxpayer-response letter dated October 30, 1985 in the reproduced body; STAR's API metadata gives September 30, so this page follows the body date. The result depends on the brick remaining in the park walkway and the contributor receiving neither title nor possession. STAR's caption also mentions newsletter publication, but the reproduced body does not. The letter says similar but different facts could change the conclusion. Current donation, naming-rights, tangible-property, fundraising, and sales-tax rules may differ, and STAR documents may no longer represent current policy even when not marked superseded. Letters on STAR can support detrimental reliance only for the taxpayer to whom the letter was directly issued under 34 Tex. Admin. Code Rules 3.1 and 3.10. This summary is informational only and is not legal or tax advice.
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

Companies or individuals contributed money to a park-support organization and had the requested name stamped on a brick used to build a walkway in the park.

Because the contributor received neither title nor possession of the brick, the Comptroller said the transaction did not fall within the definition of a sale. The contribution was nontaxable.

Common questions

Was the contribution taxable? No.

Did the contributor own or possess the brick? No.

Did the reproduced body address newsletter recognition? No.

Citations and references

The reproduced letter cites no numbered statute or rule.

Source

Original ruling text

October 30, 1985

Dear ***:

Thank you for your letter concerning the taxability of donations given in
exchange for placing a commemorative brick in a walkway on the PARK X
grounds.

As I understand a company or an individual may give $*** to the
Friends of PARK X. In exchange for the donation a brick will be stamped with
the name requested by the contributor. The brick will be used to build a
walkway in PARK X.

The contribution and subsequent placing of a commemorative brick is not
the transfer of title or possession of tangible personal property to the
contributor and does not fall within the definition of a sale. The
contribution is not subject to sales tax.

This reply is based on the facts as presented, other facts although
similar, may result in a different conclusion.

Please don't hesitate to call if you have any questions. The toll-free
number is 1-800-252-5555.

Sincerely,

Tax Administration Division

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