Is a publication sold by the State Bar of Texas exempt from Texas sales tax under Tax Code Section 151.312?

Subject

Governmental Entities — Publications — Not Exempt Under 151.312

Plain-English summary

A taxpayer asked the Comptroller whether sales of the Monograph — a publication of the State Bar of Texas Section of Antitrust and Business Litigation — should be exempt from Texas sales tax under Tax Code Section 151.312. That section is normally used by certain exempt organizations to sell publications tax-free.

The Comptroller's answer was no. The Comptroller's records showed the State Bar of Texas itself to be an exempt governmental entity, not the type of organization that Section 151.312 covers. Because of that classification, publications the State Bar sells — including the Monograph — do not qualify for the Section 151.312 exemption.

The letter notes the ruling is based on the specific facts presented, and that other, similar facts could lead to a different result.

Note: the letter also carries a 2025-era alert (added by the Comptroller when the letter was posted to STAR) stating that the related administrative rule, 34 Tex. Admin. Code Rule 3.341 (Governmental Publications, Records or Documents), was repealed effective 02/11/2008, with its content folded into subsection (h)(5) of Rule 3.322 (Exempt Organizations) effective 07/19/2011. That alert reflects a later change in the rules, not part of the original 1992 ruling itself.

What this means for you

Governmental entities and their publications

If your organization is classified by the Comptroller as an exempt governmental entity, this ruling indicates that publications you sell are not automatically tax-exempt just because you are exempt from tax generally. The Section 151.312 publication exemption discussed in this letter was found not to apply to a governmental entity's publications.

Organizations relying on Section 151.312

If you are considering claiming the Section 151.312 exemption for a publication you sell, this ruling is a reminder that eligibility depends on your organization's specific exempt classification. A governmental entity does not qualify under this section, even though it may be exempt from tax for other reasons.

Accountants and tax professionals

This letter turns entirely on how the requesting organization (here, the State Bar of Texas) was classified in the Comptroller's records — as a governmental entity rather than the type of organization eligible under Tax Code Section 151.312. Note also the later regulatory history flagged in the ALERT: the related rule (34 Tex. Admin. Code Rule 3.341) was repealed in 2008 and its substance moved into Rule 3.322(h)(5) in 2011, so current guidance should be checked against Rule 3.322 rather than the now-repealed Rule 3.341.

Common questions

Q: Why wasn't the Monograph exempt under Tax Code Section 151.312?
A: Because the Comptroller's records showed the State Bar of Texas to be an exempt governmental entity, and publications sold by a governmental entity do not qualify for the Section 151.312 exemption.

Q: Does being tax-exempt automatically mean an organization's publications are exempt too?
A: Not according to this ruling. The State Bar of Texas is treated as exempt in its own right, but that status did not extend to make its Monograph publication exempt under Section 151.312.

Q: Is this ruling still current?
A: The letter itself is from 1992. STAR's own alert on the letter notes that 34 Tex. Admin. Code Rule 3.341, which concerned governmental publications, records, or documents, was repealed effective 02/11/2008, with its content incorporated into subsection (h)(5) of Rule 3.322 concerning Exempt Organizations effective 07/19/2011. Anyone relying on this letter today should check current Rule 3.322.

Q: Can I rely on this letter for my own situation?
A: The letter states its opinion is based on the facts presented and that other, similar facts may yield different results. It was also addressed to a specific taxpayer regarding a specific publication.

Citations and references

Statutes:

• Tax Code Section 151.312 (publication exemption cited as the basis for the taxpayer's request; the Comptroller found it did not apply to the State Bar of Texas as a governmental entity)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9209410L

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.

September 18, 1992

Dear Mr. **:

Thank you for your recent question regarding the taxability of the Monograph, a

publication of the State Bar of Texas Section of Antitrust and Business

Litigation. You believe that sales of the Monograph should be exempt from sales

tax under Tax Code Section 151.312.

Our records show the State Bar of Texas to be an exempt governmental entity. As

such, their publications would not qualify for exemption under Tax Code Section

151.312.

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