Ezel / Tax Rulings / TX
TX 8911L0970E11 Sales and/or Use Tax (State,Local,MTA) 1989-11-15

Were textbooks taxable when separately charged to students versus included in lump-sum tuition or registration for a course?

Short answer: Separately stated textbooks and materials transferred to students were taxable. A lump-sum course charge including them was not taxable, but the course provider owed tax on the materials unless it qualified as an exempt entity.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Separately stated charges for textbooks and other training materials that became student property were taxable.

If the materials were included in one lump-sum tuition or registration charge for the class, the student charge was not taxable. The course provider instead paid tax on all materials used or transferred in providing the course.

A school or organization qualifying as an exempt entity under Rule 3.322 could buy those items tax-free.

Common questions

Were separately charged textbooks taxable? Yes.

Was lump-sum tuition including books taxable? No.

Who paid tax on materials in the lump-sum arrangement? The provider, unless exempt.

Citations and references

  • 34 Tex. Admin. Code Rule 3.322

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

November 15, 1989

Dear ***:

Thank you for your letter dated November 9, 1989, requesting a
written clarification of the taxability of textbooks included in
the tuition and registration fees for educational courses.

Texas sales tax should be collected on separately-stated charges
for textbooks and other training materials which become the
property of students.

If, however, the textbooks are included in a lump-sum charge for a
training class or other educational course, then the lump-sum
charge to the student is not taxable. The provider of the course
will owe tax on the cost of all materials used to provide the
course, including the items transferred to the students. If the
school or other organization qualifies as an exempt entity, per
Rule 3.322, then the school may purchase the items tax-free.

Rule 3.322 is enclosed for your reference.

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

Please feel free to contact me if you have any additional
questions. You may write me, call toll-free 1-800-252-5555 (ext.
3-4685) from anywhere in the United States or phone 512/463-4685.

Sincerely,
Julie Pesl
Tax Correspondence

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