Ezel / Tax Rulings / TX
TX 8909L0958F09 Sales and/or Use Tax (State,Local,MTA) 1989-09-01

Could a customer's letter substitute for a properly completed Texas direct-payment exemption certificate?

Short answer: No. The letter was unacceptable. The seller had to charge the customer tax on taxable items unless the customer issued a properly completed direct-payment exemption certificate in the form accepted under Rule 3.288.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

A customer gave the seller a letter instead of a completed direct-payment exemption certificate.

The letter was not acceptable. The seller had to bill sales tax on taxable items sold to that customer unless the customer issued a properly completed direct-payment exemption certificate.

Rule 3.288 contained an acceptable certificate form.

Common questions

Could the customer's letter replace the certificate? No.

What did the seller do without a valid certificate? Charge sales tax.

Where did the ruling point for an acceptable form? Rule 3.288.

Citations and references

  • 34 Tex. Admin. Code Rule 3.288

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller September 1, 1989

Dear ***:

Thank you for your letter asking if a letter you received from
CORP X is acceptable in lieu of a completed exemption certifi-
cate.

The letter is not acceptable in lieu of a properly completed
direct payment exemption certificate. The sales tax is due on
the taxable items sold to CORP X and should be billed to them
unless a properly completed exemption certificate is issued to
COMPANY A. Rule 3.288 contains an acceptable direct payment
exemption certificate.

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 463-4666. You may write me at Tax Correspondence, Comp-
troller of Public Accounts.

Sincerely,
Jo Ann Dieck
Tax Correspondence

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