Which cookbook, book, and museum-meal sales by a qualifying Texas nonprofit organization were taxable?

Plain-English summary

A museum organization asked about its sales of books and meals. The Comptroller said qualifying nonprofit organizations did not owe sales tax on books, periodicals, and certain other writings they published and shipped, marketed, or sold, and the organization appeared to qualify.

The organization's own cookbook was exempt because it published and sold it. Books the organization did not publish were taxable, including books first published in the 1950s and later reprinted exclusively for the organization.

Meals sold at the museum were also taxable.

What this means for you

The exemption described in the letter depended on both the organization's qualifying status and its role as publisher. Exclusively commissioning a reprint did not make the organization the publisher of that book.

Common questions

Was the organization's own cookbook taxable? No.

Were books published by others taxable? Yes.

Did an exclusive reprint qualify? No. The letter treated the reprinted books as taxable because the organization did not publish them.

Were museum meals taxable? Yes.

Citations and references

The letter did not cite a statute or administrative 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/9012L1060G12

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

December 6, 1990

Dear *** :

Thank you for your letter concerning your organization's sales of
books and sales of meals at your museum.

Sales tax is not due on sales of books, periodicals and certain
other writings that are published and shipped, marketed or sold
by qualifying non-profit organizations. It appears your organiza-
tion qualifies.

The ** Cookbook, which is published and sold by your organiza-
tion is exempt.

The books not published by your society but are sold by the soci-
ety are taxable. This includes the books that were originally
published in the 1950's and reprinted exclusively for your organi-
zation.

The meals sold at your museum are also subject to tax.

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

Please write or call if you have any questions. You can call toll
free at 800-531-5441. Our regular number is 512-463-3830 and our
FAX number is 512-475-0900.

Sincerely,
Larry Koenig
Taxability Section
Legal Services Division