Were government and federal-court records exempt, was a reseller's markup taxable, and did an investigator include reimbursed expenses in its taxable sales price?

Plain-English summary

Government documents required to be provided under the Texas Open Records Act were exempt whether certified or uncertified. The Comptroller also exempted the original sale of federal-court documents.

When those exempt documents were resold, any markup was taxable. Other document sales to clients were taxable in full, although the reseller could give its supplier a resale certificate at purchase.

Expenses directly related to an investigation formed part of its taxable sales price. In the letter's example, a $10 meal plus 70 cents tax produced a $10.70 amount included in the investigator's taxable charge to the client.

Common questions

Original federal-court document charge taxable? No.

Reseller markup taxable? Yes.

Other document sales taxable? Yes.

Client investigation expenses included in taxable price? Yes.

Citations and references

• Comptroller Rule 3.333(g)(3).

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9006L1027B01

Original ruling text

June 15, 1990

Dear ***:

Sales of documents by governmental entities are exempt from tax
if they are required to be provided under Texas Open Records Act.
The documents may be certified or uncertified. We also exempt
the sale of federal court documents. When these documents are
resold, the mark -up if any is taxable, but the original charge
for the document is exempt.

On other sales of documents made to your clients, you will be
required to charge tax. However, you will be able to buy the
documents tax free by giving your supplier a resale certificate
at the time of purchase.

Charges for expenses directly related to and incurred while
performing an investigation must be included as part of the sales
price of the investigation. Your example of the meal for $10
and 70 cents tax was a good one. The entire $10.70 would be part
of your taxable sales price to your client. For more information,
please refer to section (g)(3) of the enclosed rule 3.333.

This opinion is based on the facts you presented. Other facts,
though similar, may yield different results.

If you have questions or need more information, please call our
tollfree number 1-800-531-5441. My direct line number is 463-4680
(FAX (512) 475- 0900). You may write to me in care of Taxability
Section.

Sincerely,

Al Van Allen
Taxability Section
Legal Services Division