How could a customer seek a Texas sales-tax refund after taking possession in Texas and exporting the goods to Canada?

Plain-English summary

A customer asked about recovering Texas sales tax after taking possession of merchandise in Texas and exporting it to Canada.

The Comptroller said the customer should copy the formal Canadian customs entry documents and merchant receipts for each purchase. Those records had to show that the merchandise entered Canada within 30 days of purchase.

The customer then sent the documents and a refund-request letter to each merchant. With that proof, a merchant could choose to refund the tax and recoup it from Texas.

What this means for you

The historical procedure placed the refund request with the seller and required timely Canadian import proof. The merchant's refund was optional under the letter's wording.

Common questions

Could the customer take possession in Texas? Yes, under the procedure described.

What was the export deadline? The goods had to enter Canada within 30 days of purchase.

Who received the refund request? Each merchant.

Was the merchant required to issue a check? The letter said the merchant could do so at its option.

Citations and references

• 34 Tex. Admin. Code Rule 3.323(c)(1)(C) and (e) — export documentation and refund provisions cited by the letter

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9105L1110B13

Original ruling text

May 16, 1991

Dear **:

Thank you for your letter requesting information on our sales tax
refund policy when customers take possession of goods in Texas
and export them to Canada. You will find this information in the
enclosed rule 3.323, subsections (c)(1)(c) and (e).

In brief, you should make copies of the formal entry documents
you were given by Canadian Customs and the merchants' receipts on
each purchase showing that you brought the merchandise into
Canada within 30 days of the date of purchase. You should send
this documentation along with a letter requesting your tax refund
to each merchant. With this documentation, the merchants may at
their option send you a check for the tax you paid and recoup the
tax from the State of Texas.

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 or
write. My direct line number is 512-463-4680 [FAX (512) 474-
1643]. You may write to me in care of Tax Administration
Division.

Sincerely,

Al Van Allen
Tax Administration Division