Ezel / Tax Rulings / TX
TX 8910L0964G05 Sales and/or Use Tax (State,Local,MTA) 1989-10-09

Did a nonprofit genealogical society collect Texas sales tax on books it published and sold, and on books written by individuals?

Short answer: Its own books were exempt because qualifying nonprofit organizations' writings were not taxable when the organization both published and distributed them. Books published by individuals but merely sold by the society remained taxable. The letter said the exemption did not cover nonprofit educational organizations.

Apply this to your situation

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Effective August 28, 1989, books, magazines, newsletters, and other writings published and distributed by certain nonprofit religious, philanthropic, charitable, historical, or scientific organizations were exempt from Texas sales tax. The letter said nonprofit educational organizations were outside that exemption.

The genealogical society did not owe tax on books that it published and sold. Books published by individual authors but sold by the society remained taxable.

Common questions

Were the society's own published books taxable? No.

What about books published by individuals? They were taxable when the society sold them.

Did the stated exemption cover nonprofit educational organizations? No.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller October 9, 1989

Dear Taxpayer:

Thank you for your letter regarding collection of sales tax on
books sold by The Genealogical Society of ***.

Effective August 28, 1989, books magazines, newsletters and other
writings that are published and distributed by certain non-profit
organizations are not taxable. This includes religious, philan-
thropic, charitable, historical, or scientific organizations. But
it does not include non-profit educational organizations.

Sales tax would not be due on the books published and sold by your
organization. Sales tax would be due on books published by indivi-
duals, but sold by your organization.

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

If you have any questions or need additional information, you may
call toll free 1-800-252-5555 or the regular number 512/463-4600.
My extension is 3-4666. You may write to Tax Correspondence,
Comptroller of Public Accounts.

Sincerely,
Jo An Dieck
Tax Correspondence

Get today's answer for your situation

You just read a 1989 ruling on this question. Ezel checks current Texas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.