What did the Comptroller's August 1989 news release say about the new sales-tax exemption for nonprofit publications?

Plain-English summary

This document is an official Comptroller news release, not a taxpayer-specific ruling.

It announced a new law effective August 28, 1989 under which charitable, philanthropic, and benevolent organizations could sell publications and other writings tax-free when the group itself published and distributed the material.

The release gave a local historical society's self-published cookbook as an example. It also identified Junior League groups, college sororities and fraternities, Rotary and Kiwanis clubs, and Parent-Teacher Associations as examples covered by the exemption.

The release said the legislation followed a U.S. Supreme Court decision finding that Texas unfairly exempted religious publications while not exempting publications from other organizations. The refunded amount in the source is redacted.

Common questions

Is this a letter ruling? No, it is a news release.

When did the announced exemption begin? August 28, 1989.

What was the core condition? The qualifying organization had to publish and distribute the writing itself.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8908L0950F14

Original ruling text

NEWS RELEASE

COMPTROLLER OF PUBLIC ACCOUNTS BOB BULLOCK COMPTROLLER

FOR IMMEDIATE RELEASE
Wednesday, August 30, 1989

AUSTIN, Tex.--State Comptroller Bob Bullock said Wednesday that a new law
provides
sales tax exemptions to a variety of philanthropic and charitable groups,
while showing Texas to comply with a recent U.S. Supreme Court ruling.

"The new law serves two purposes--it gives deserving groups a tax break,
And it allows us to keep our sales tax laws intact," Bullock said.

Under the new law, which went into effect August 28, charitable,
philanthropic and
benevolent organizations may sell publications and other writings
tax-free if the groups publish and distribute the printed materials themselves.

For example, if a local historical society sells cookbooks to raise
funds, no tax is due on the books, as long as the society publishes and
distributes the cookbooks, Bullock said.

Examples of other groups that fall under the exemption include the Junior
League, college sororities and fraternities, the Rotary Club an Kiwanis Club,
And the Parent-Teacher Association.

Bullock said the legislation was passed after the Supreme Court ruled in
February that Texas was unfairly exempting religious organizations from paying
sales tax on periodicals and writings, since periodicals produced by other
types of organizations weren't exempted.

The case against the state was brought by Texas Monthly magazine, which
was refunded
$XXXXXXXX in state sales tax after the Supreme Court upheld the
magazine's argument.

Bullock said that extending the sales tax exemption to other groups will
have no impact on state revenue.