Ezel / Tax Rulings / TX
TX 8709L0834B01 Sales and/or Use Tax (State,Local,MTA) 1987-09-08

Were purchases by the U.S. Economic Development Administration exempt from Texas sales and use tax?

Short answer: Yes. Texas treated the agency as an instrumentality of the U.S. Government and exempted its purchases from sales and use tax.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
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 a taxpayer-specific September 1987 Texas Comptroller letter confirming an earlier determination about the U.S. Economic Development Administration. It says the opinion may change if the facts differ. Its agency status, certificate, and construction-contract references are historical; verify current federal-purchase documentation. STAR documents may no longer represent current policy even when not marked superseded. Identities are redacted. 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

The Comptroller had determined in 1971 that the Economic Development Administration was an instrumentality of the U.S. Government. Its agency purchases were therefore exempt from Texas sales and use tax.

The 1987 response enclosed a current exemption certificate, Rule 3.322 on exempt organizations, and Rule 3.291 on construction contracts.

What this means for you

The historical letter confirms the federal agency's purchase exemption and the use of exemption documentation. It does not separately analyze purchases by contractors or other parties acting around the agency.

Common questions

Was the Economic Development Administration treated as a federal instrumentality? Yes.

Were its agency purchases exempt? Yes, from sales and use tax.

What materials accompanied the answer? An exemption certificate and Rules 3.322 and 3.291.

Citations and references

  • Texas Comptroller Rule 3.322, exempt organizations
  • Texas Comptroller Rule 3.291, construction contracts

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

September 8, 1987

Dear ****:

As you requested in your letter of August 11, 1987, I'm enclosing a
current tax exemption certificate.

In 1971 the Comptroller determined that the Economic Development
Administration is an instrumentality, of the U.S. Government and as such is
exempt from sales and use tax on the agency's purchases.

I'm also enclosing updated Rule 3.322 on exempt organizations, and Rule
3.291 on construction contracts.

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

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 Policy Division.

Sincerely,
Adina Whittemore
Tax Policy Division

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