Ezel / Tax Rulings / TX
TX 8802L0869D05 Sales and/or Use Tax (State,Local,MTA) 1988-02-04

Could an airline take delivery of taxable items in Texas without sales tax when it transported them outside Texas?

Short answer: Yes. A common carrier could purchase and take delivery of taxable items in Texas without sales tax when the carrier delivered the items outside Texas under its bill of lading.

Apply this to your situation

This page answers the general question as of 1988. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1988
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 February 1988 Texas Comptroller letter applying Rule 3.297(a)(5). It says the opinion may change if the facts differ. STAR's caption mentions aircraft materials and business use, but the operative body states only the common-carrier and bill-of-lading delivery rule; this page does not add a use requirement not stated there. Interstate-delivery and common-carrier exemptions may have changed; verify current law. STAR documents may no longer represent current policy even when not marked superseded. Taxpayer-identifying details 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

A common carrier, identified parenthetically as an airline, could purchase and take delivery of taxable items in Texas without paying Texas sales tax if the carrier transported the items outside Texas under its own bill of lading.

The Comptroller cited Rule 3.297(a)(5).

What this means for you

The historical result required actual delivery outside Texas by the common carrier under its bill of lading. The operative text does not separately describe aircraft parts, installation, storage, or later use.

Common questions

Could the airline take delivery in Texas? Yes.

What made the transaction sales-tax exempt? The common carrier delivered the items outside Texas under its bill of lading.

Citations and references

  • 34 Tex. Admin. Code Rule 3.297(a)(5) — historical common-carrier delivery provision.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

February 4, 1988

Dear ***:

On behalf of Mr. Bullock, I hope you'll accept my apology for the delay
in answering your question involving changes in the sales tax law. This
isn't the way we normally do business.

Our people were, and still are, swamped by a deluge of inquiries as they
attempted to interpret provisions of the new law and draft rules which
would not adversely impact businesses. In many instances, an answer to a
question just wasn't available when the question arrived.

A common carrier (an airline) may still purchase and take delivery of
taxable items in Texas sales tax exempt if the items are delivered
outside Texas by the carrier under its bill of lading. See section
(a)(5) of Rule 3.297 (enclosed).

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 our
toll-free number 1-800-531-5441. The regular number is 512/463-4600.
You may write me at the Tax Policy Division.

Sincerely,
Eddie C. Washington
Tax Policy Division

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