Did the Texas Historical Commission have to collect sales tax on historical-marker plaques posted beside highways or on buildings?

Plain-English summary

The Texas Historical Commission asked about markers posted beside highways or on buildings. The Comptroller said the Commission did not have to collect sales tax on its charge for the markers.

Sections 151.310 and 151.3101 did not themselves apply to sales of writings. The letter explained that § 151.312 exempted writings sold by certain organizations, and the sales-tax law did not define the term “writings.” On that basis, the Comptroller treated the historical-marker plaques as writings under § 151.312.

The letter also referred to prior guidance treating books, pamphlets, and other writings published and sold by the Commission as exempt because it was a nonprofit entity organized for historical purposes.

What this means for you

This 1991 letter applied specifically to the Texas Historical Commission and its historical-marker plaques. Its reasoning depended on the Commission's qualifying status and the writings exemption, not merely on the objects being plaques.

Common questions

Did the Commission collect sales tax on historical-marker charges? No.

Why did the plaques qualify? Because “writings” was undefined in the sales-tax law, the Comptroller treated the historical markers as writings under § 151.312.

Did §§ 151.310 and 151.3101 exempt the marker sales? No. The letter said those provisions did not apply to sales of writings.

What prior Commission products did the letter mention? Books, pamphlets, and other writings published and sold by the Commission.

Citations and references

• Tex. Tax Code § 151.310 (certain purchases by qualifying organizations)
• Tex. Tax Code § 151.3101 (certain amusement services)
• Tex. Tax Code § 151.312 (sales of writings by certain organizations)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9103L1093F12

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

JOHN SHARP
Comptroller March 25, 1991

STAFF SERVICES OFFICER
TEXAS HISTORICAL COMMISSION
PO BOX 12276
AUSTIN TX 78711

Dear ** :

Thank you for your letter of March 18, 1991; concerning the tax-
ability of historical markers that are posted beside highways or
on buildings.

Sections 151.310 and 151.3101 of the sales tax law do not apply
to sales of writings. Section 151.310 exempts from sales tax
purchases of taxable items by an organization qualifying for
exemption under this provision when the items relate to the orga-
nization's purpose. Section 151.3101 exempts amusement services
provided by certain organizations.

Ms. Adina Whittemore of our office wrote to **
on March 15, 1990, informing the commission that as a non-profit
entity organized for historical purposes, that the books, pam-
phlets, and other writings published and sold by the commission
were exempt.

The statutory provision of the sales tax law that exempts sales of
writings by certain organizations does not define "writings."
Because the term is not defined in the sales tax law, the plaques
(historical marker) qualify as writings under Section 151.312 of
the sales tax law. The commission is not required to collect
sales tax on the charge for markers.

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

You may call 463-4600 if you have any questions or need more
information. You may write to Tax Administration Division, Comp-
troller of Public Accounts.

Sincerely,
Eddie C. Washington
Tax Administration Division