Were books, periodicals, newsletters, and other writings published and distributed by a qualifying nonprofit historical society taxable?

Plain-English summary

The Comptroller said books, magazines, newsletters, and other writings published and shipped, marketed, or sold by qualifying nonprofit historical and other listed organizations were not taxable. The letter stated that this treatment included certain federally exempt organizations but did not extend to nonprofit educational organizations.

The source conflicts on the exemption's effective year. Its first paragraph says August 28, 1988, while a later paragraph says publications sold before August 28, 1989 were taxable and those sold after August 27 were exempt. Because the ruling itself does not resolve that discrepancy, this page does not select one year.

Tax collected on an exempt sale had to be remitted unless refunded to the customer. The historical society also needed to establish its exempt status before buying items for its own exempt purpose without tax.

Common questions

Were qualifying historical-society publications exempt? Yes.

What was the precise effective date? The source gives conflicting 1988 and 1989 years, so it cannot be verified from this text alone.

What happened to tax already collected on an exempt sale? It had to be remitted unless returned to the buyer.

Citations and references

• 34 Tex. Admin. Code Rule 3.322

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9001L0977F07

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

January 16, 1990

Dear ***:

Thank you for your letter regarding taxability of publications
distributed by the * County Historical Society. I could
not call you at the time you asked because I did not receive
your letter until the afternoon of January 10.

Effective August 28, 1988, books, magazines, newsletters, and
other writings that are published and shipped, marketed, or sold
by certain non-profit organizations are not taxable. This
includes religious, philanthropic, charitable, historical, and
scientific organizations. This exemption also extends to non-
profit organizations that have been granted an exemption from
federal income taxes under 503(c)(3). However, the exemption does
not extend to non-profit educational organizations.

Sales tax would not be due on books, periodicals and any other
writings published and shipped, marketed, or sold by the *
County Historical Society or other qualified organizations.

Sales tax is due on the publications sold before August 28, 1989.
If tax was collected on exempt publications sold after August 27,
the tax must be remitted to this office unless the tax is refunded
to the person from whom it was collected.

Our records do not show that the organization has previously
applied for or been granted sales tax exempt status. If the
organization received exemption from federal income tax as a
503(c)(3) organization, you may submit a copy of the exemption
letter from the Internal Revenue Service to our Exempt
Organization Section. If the organization qualifies for sales ax
exempt status, the organization would be entitled to purchase
items that relate to its exempt purpose tax free for its own use.
Please see Rule 3.322 - Exempt Organizations - enclosed.

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

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

Sincerely,
Jo Ann Dieck
Tax Correspondence