Ezel / Tax Rulings / TX
TX 8908L0951F10 Sales and/or Use Tax (State,Local,MTA) 1989-08-21

When could a Texas seller treat merchandise shipped out of state as exempt from Texas sales tax?

Short answer: The sale was exempt when the seller delivered the goods out of Texas through a carrier or its own trucks and kept records—such as bills of lading or trip logs—showing the out-of-state shipment.

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This page answers the general question as of 1989. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1989
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 of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
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

Section 151.330 exempted tangible personal property transported outside Texas when the seller handled the out-of-state delivery.

The seller could give the goods to a carrier or deliver them in its own trucks. In either case, it had to retain evidence—such as a carrier bill of lading or trip logs—showing that the goods were shipped out of Texas.

Common questions

Could a common carrier make the delivery? Yes.

Could the seller use its own trucks? Yes.

What records did the letter identify? Carrier bills of lading, trip logs, or other documentation proving out-of-state shipment.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

August 21, 1989

Dear *:

Thank you for your letter concerning your sales tax responsi-
bilities for merchandise mailed out of state.

According to Sec. 151.330 of the Texas Tax Code, the sale of
tangible personal property transported outside Texas is exempt
from Texas sales tax. The seller may deliver the goods to a
carrier for delivery out of state, or delivery may be made on
seller's own trucks. The seller must keep documentation (carrier
bill of lading, trip logs, etc.) showing that the goods were
shipped out of state.

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

If you have any questions, please contact Tax Correspondence. You
may call toll free 1-800-252-5555, or our regular number is
512/463-4600. My extension is 3-4668.

Sincerely,
Sherry Buckley
Tax Correspondence

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