What Texas tax exemptions applied to the Boy Scouts National Council and individual branches or troops?

Plain-English summary

The Boy Scouts of America National Council had been recognized as a Section 501(c)(3) organization and was exempt from limited sales tax on purchases, leases, or rentals related to its exempt purpose.

All Boy Scouts branches and troops had separately been recognized as an educational organization. Their exemption covered limited sales tax, hotel occupancy tax, and motor-vehicle tax for qualifying purchases.

Each organization could issue a properly completed exemption certificate for purchases related to its own purpose. They were separate entities and could not issue certificates in each other's names.

Texas did not use exemption numbers.

What this means for you

The Boy Scouts name did not create one interchangeable exemption. The purchasing entity and its own exemption type controlled the certificate and taxes covered.

Common questions

Did Texas assign exemption numbers? No.

What exemption did the National Council have? A 501(c)(3)-based limited-sales-tax exemption.

What exemptions did branches and troops have? Limited sales, hotel occupancy, and motor-vehicle tax as an educational organization.

Could a troop use the National Council's certificate? No.

Citations and references

The letter identified the National Council as a Section 501(c)(3) organization but cited no Texas statute or rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9010L1054B06

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

October 30, 1990

Dear ** :

Thank you for your recent letter regarding the tax exempt status
of the Boy Scouts.

The Boy Scouts of America, National Council was granted exemption
by this office on February 21, 1979 as a 501(c)(3) organization.
This organization is exempt from the limited sales tax on the pur-
chase, lease or rental of items that relate to the purpose of the
exempt entity. Exempt numbers do not exist in Texas.

The Boy Scouts of America (all branches/troops) was granted exemp-
tion by this office on March 3, 1972 as an educational organiza-
tion. This organization is exempt from the limited sales tax, hotel
occupancy tax and the motor vehicle tax. Exempt numbers do not exist
in Texas.

The Boy Scouts of America, National council may issue a properly
completed exemption certificate on purchases that relate to its
purpose as a 501(c)(3) organization.

The Boy Scouts of America (all branches/troops) may issue a prop-
erly completed exemption certificate on purchases that relate to
its purpose as an educational organization.

The above organizations are separate entitled, each having a dif-
ferent type of exemption and entitled to exemptions from different
taxes. Because the two organizations are separate entities, one
may not issue an exemption certificate under the other organiza-
tion's name.

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 5-0330. The regu-
lar number is 512/463-4600, or write me at Tax Correspondence.

Sincerely,
Bettie U. Peterson
Tax Correspondence Division