Could a completed buyer registration and checkout card serve as a Texas resale certificate, and what audit records were required?

Plain-English summary

The Texas Comptroller said a buyer registration and checkout card, fully completed at each sale, was sufficient as a resale certificate.

For audit records, the seller was to staple each buyer's receipts to the back of that buyer's card and keep the cards grouped sale by sale. Every receipt also had to be dated and show any tax collected.

The card procedure did not replace agricultural exemption documentation. A person claiming that exemption still had to provide a fully completed exemption certificate at each qualifying purchase.

What this means for you

The approved card worked because it captured the required information for each sale and was tied to complete receipts. Different exemptions still required their own documentation.

Common questions

Could the card serve as a resale certificate? Yes, when fully completed at each sale.

What records had to be attached? Each buyer's dated receipts, showing any tax collected.

How were records organized? Grouped on a sale-by-sale basis.

Did the card cover agricultural exemptions? No. A complete agricultural exemption certificate was still required for each purchase.

Citations and references

• The letter cited no numbered statute or Comptroller rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8701L0787F05

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller January 16, 1987

Dear ***:

Thank you for your recent letter and attachments.

Your "Buyer's Registration and Check Out" card when completely filled out
at
each sale will be sufficient as a resale certificate. As we discussed,
when
you staple the receipts for each buyer to the back of his card, and keep
the
cards grouped on a sale-by-sale basis, you will have an accurate record
for
audit purposes. One important note: Each receipt form must also be dated
and show the tax collected if any.

While this is an excellent method for accounting for sales for resale, a
person claiming the agricultural exemption would still have to file a
completely filled out exemption certificate at the time of each purchase
of
qualified material.

If you have any questions or need more information, please call me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Administration Division.

Sincerely,
Al Van Allen
Tax Policy Section
Tax Administration Division