Could a teacher buy classroom supplies with personal funds without paying Texas sales tax if the school reimbursed the purchase?

Plain-English summary

The requester asked about teachers using their own money to buy supplies for their classrooms.

The Comptroller said a public school district was exempt when it purchased items with school funds. An official purchase voucher was sufficient proof for a school purchase, and an authorized agent making a cash purchase for the school had to give the vendor an exemption certificate.

A teacher's own purchase was different. The teacher had to pay sales tax even if the school provided an allowance or reimbursement and even if the supplies were used only in the classroom. The school could instead buy the items directly for the teacher under the school's exemption.

What this means for you

The identity of the purchaser and the purchase documentation controlled. Classroom use and later reimbursement did not convert a teacher's personal purchase into the school's exempt purchase.

Common questions

Did exclusive classroom use make the teacher's purchase exempt? No.

Did reimbursement make it exempt? No.

How could the school buy the supplies tax-free? It could purchase them directly with school funds and use an official purchase voucher or, for an authorized cash purchase, an exemption certificate.

Who paid tax when the teacher bought the items personally? The teacher.

Citations and references

• 34 Tex. Admin. Code Rule 3.322(f)(3) — public-school purchase vouchers
• 34 Tex. Admin. Code Rule 3.322(f)(4) — authorized-agent cash purchases
• 34 Tex. Admin. Code Rule 3.322(f)(5) — employee purchases, allowances, and reimbursements

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9105L1109B08

Original ruling text

May 10, 1991

Dear **:

Thank you for your recent letter concerning teachers buying supplies with their
own funds to be used in their classrooms.

A public school district is exempt for items the school district purchases with
their own funds. Purchases by a public school are covered in Rule 3.322 (f) on
exempt organizations, which I have enclosed. A purchase voucher issued by the
public school is sufficient proof of their exempt status as covered in (f) (3)
of that Rule. If an authorized agent is making a cash purchase for the public
school, then an exemption certificate must be given to the vendor as required
in (f)(4) of Rule 3.322.

Teachers are not exempt from paying sales tax on their purchases even though
they receive an allowance or reimbursement from the organization as stated in
(f)(5) of Rule 3.322. This is the case even if they use the items only in their
classrooms.

In summary, a teacher that purchases items to be used in the classroom, must
pay sales tax on those items whether the teacher is reimbursed or not. A public
school can purchase the items directly for the teacher and be exempted from the
sales tax.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

You may call me toll free at 1-800-252-5555, ext. 33690. The regular number is
512/463-3690. You may also write to Tax Administration at the above address.

Sincerely,

David Somerville
Tax Administration Division