Were the Texas Workers' Compensation Commission's charges for medical fee guidelines, blank forms, rules, and agenda packets subject to sales tax?

Plain-English summary

The Texas Workers' Compensation Commission asked about sales tax on medical fee guidelines, blank forms, rules, and agenda packets it sold. The Comptroller confirmed that a prior exemption conclusion for the medical fee guidelines remained correct and said the charges for blank forms, rules, and agenda packets were exempt under former Rule 3.341(a) and (b).

The attached internal memo explained that the packages consisted primarily of blank forms and reports. It viewed the Commission's statute and rules as exempt and reasoned that forms and reports the public needed to file with the agency also fit the governmental-document exemption.

STAR places an alert above the original text: Rule 3.341 was repealed effective February 11, 2008, and its content was incorporated into Rule 3.322(h)(5), effective July 19, 2011.

What this means for you

The historical holding was that the Commission's listed governmental publications and filing documents were exempt. Anyone researching the issue now should use Rule 3.322(h)(5), not the repealed Rule 3.341 citation.

The letter addressed documents sold by a Texas state agency. It does not establish that every publication sold by any organization is exempt.

Common questions

Were the medical fee guidelines taxable? No. The letter confirmed an earlier exemption opinion.

Were blank forms, rules, and agenda packets taxable? No.

Is Rule 3.341 still in effect? No. STAR says it was repealed effective February 11, 2008.

Where did its content move? STAR points to Rule 3.322(h)(5), effective July 19, 2011.

Citations and references

• Former 34 Tex. Admin. Code Rule 3.341(a) and (b) — governmental publications, records, or documents; repealed.
• 34 Tex. Admin. Code Rule 3.322(h)(5) — current location identified by STAR's alert.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9107L1123E13

Original ruling text

ALERT: Rule 3.341 concerning Governmental Publications, Records or Documents
has been repealed effective 02/11/2008. The content of Rule 3.341 has been
incorporated into subsection (h)(5) of Rule 3.322 concerning Exempt
Organizations effective 07/19/2011.

July 31, 1991

Dear **:

** had written to me regarding the taxability of the
blank forms, rules, agenda packets, and medical fee guidelines
sold by the Texas Workers' Compensation Commission. *** pointed
out that Adina Whittemore had previously found the medical fee
guidelines to be exempt. That opinion is still correct.

Your charges for blank forms, rules, and agenda packets are
exempt under rule 3.341(a) and (b). I am enclosing a copy for
your files.

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. You may reach me by calling toll free, (800) 531 5441.
My direct line number is (512) 463-4680. The number for FAX
transmissions is (512) 475-0900. You may write to me in care of
Tax Administration Division.

Sincerely,

Al Van Allen
Tax Administration Division

Date: July 22, 1991

To: Chuck Johnstone

From: Al Van Allen

Re: Sale of Governmental Documents

** with the Workers' Compensation commission has
asked about the sale of copies of their documents. The
packages are made up primarily of blank forms and reports.

I don't think there's any question but that their statute
and rules are exempt. We exempted the Medical Fee
Guidelines in 1989 so there isn't much else to consider but
the forms and reports.

I assume that if we made the public buy forms and reports so
they could file them with us that they would be exempt under
Rule 3.341 (a). But, since this is a state agency, I wanted
to get your opinion before responding.