Ezel / Tax Rulings / TX
TX 9202840L Sales and/or Use Tax (State,Local,MTA) 1992-02-05

Could a federal credit union buy beer and wine for its grand opening without paying Texas sales or use tax?

Short answer: Yes. A federal credit union organized under 12 U.S.C. § 1768 was exempt on taxable items or services bought for its own use and could give the seller an exemption certificate.

Apply this to your situation

This page answers the general question as of 1992. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1992
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

A federal credit union bought beer and wine for use at its grand opening.

The Comptroller said federal credit unions organized under 12 U.S.C. § 1768 were exempt from Texas sales and use tax on taxable items or services purchased for their own use. The seller could accept an exemption certificate instead of tax.

What this means for you

Federal credit unions

The purchase needed to be for the credit union's own use, and the organization documented the exemption with a certificate.

Vendors

Verify the buyer's federal credit union status and keep the exemption certificate supporting the sale.

Common questions

Were the beer and wine purchases taxable? No, on the stated facts.

What federal law did the letter cite? 12 U.S.C. § 1768.

What documentation could the seller accept? An exemption certificate from the federal credit union.

Citations and references

  • 12 U.S.C. § 1768 (federal credit union exemption)

Source

Original ruling text

February 5, 1992

Dear **:

Thank you for your letter requesting taxability of the purchase of beer and
wine used for a grand opening for a Federal Credit Union. I hope you will
accept my apology for the delay in answering your question.

Federal Credit Unions organized under 12 United States Code Section 1768 are
exempt from sales and use tax on purchases of taxable items or services for
their own use. You may accept an exemption certificate from such an
organization in lieu of tax.

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

If you have any questions, please don't hesitate to write the Tax
Administration Division or call one of our tax specialists toll free at
1-800-252-5555.

Sincerely,

Joan Hale
Tax Administration Division

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