Ezel / Tax Rulings / TX
TX 9103L1083G11 Sales and/or Use Tax (State,Local,MTA) 1991-03-06

Could an exempt university buy telephone lines for fire-safety hookups in university-owned fraternity houses without paying sales tax?

Short answer: Yes. Texas said the exempt university could give the telephone company an exemption certificate instead of paying tax on the fire-safety telephone lines.

Apply this to your situation

This page answers the general question as of 1991. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1991
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

An exempt university owned two fraternity houses and maintained telephone lines there for fire-safety hookups. The Comptroller said the university could give the telephone company an exemption certificate instead of paying tax.

What this means for you

The result was tied to the purchaser's exempt status and the university-owned property described in the request.

Common questions

Were the telephone-line payments taxable to the university? No under the stated facts.

What documentation could the university provide? An exemption certificate.

Where were the lines used? In university-owned fraternity houses for fire-safety hookups.

Citations and references

The letter did not cite a statute or rule.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

JOHN SHARP
Comptroller March 6, 1991

Dear ** :

Thank you for your recent letter which is restated with response
below.

Facts: UNIVERSITY M, an exempt organization, owns two fraternity
houses. The university has telephone lines in these houses for
fire safety hookups.

Question: Can you provide us with a ruling on the taxability of
payments we make for these telephone lines?

Response: The university may issue the telephone company an
exemption certificate in lieu of tax. I am enclosing a sample
certificate that you may copy and use.

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
toll-free number 1-800-531-5441. My direct line number is 512-
463-1680 (FAX (512) 47471643]. You may write to me in care of
Tax Administration Division.

Sincerely,
Al Van Allen
Tax Administration Division

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