Is a custom-designed communication board (like a FACTS board) for someone who cannot speak exempt from Texas sales tax?

Plain-English summary

A designer wrote to the Texas Comptroller asking whether a "FACTS board" — an augmentative communication device or board built for someone who cannot communicate verbally — qualifies for a sales tax exemption. The Comptroller's response was short and direct: no exemption applies. Texas statute does not provide an exemption for items used by people who cannot communicate verbally. The letter notes that exemptions do exist for certain items used by the deaf and legally blind, but there is no equivalent carve-out for non-verbal communication aids. The Comptroller pointed the requester to Rule 3.284 (Drugs, Medicines, Medical Equipment, and Devices) as the governing rule on medical equipment exemptions generally.

What this means for you

Businesses selling assistive communication devices

If you sell augmentative or alternative communication (AAC) boards, devices, or similar equipment designed for people who cannot speak, this ruling indicates the Comptroller does not treat them as automatically tax-exempt. Unless the device independently qualifies under another specific exemption category (such as a prosthetic device or an item for the deaf or legally blind under Rule 3.284), Texas sales tax applies.

Accountants and tax professionals

The letter is a useful reminder that Texas's medical/therapeutic equipment exemptions are narrow and category-specific — being "medical" or "therapeutic" in a general sense is not enough. Only items that fit within an enumerated exemption (like devices for the deaf or legally blind) qualify. A communication board for non-verbal individuals falls outside those enumerated categories, so it is taxable absent some other applicable exemption.

Common questions

Q: Is a communication board or device for someone who cannot speak tax-exempt in Texas?
A: Not automatically. This ruling found no statutory exemption specifically for items used by people who cannot communicate verbally.

Q: Are any assistive devices exempt from Texas sales tax?
A: Yes — the letter notes exemptions exist for certain items used by the deaf and legally blind. The Comptroller directed the requester to Rule 3.284 (Drugs, Medicines, Medical Equipment, and Devices) for the relevant framework.

Q: Could a different device for the same disability qualify for an exemption?
A: Possibly, if it fits a different, applicable exemption category. This letter addressed only the specific FACTS board described by the requester; the Comptroller noted that different facts, though similar, might lead to a different answer.

Citations and references

Rules:

• 34 TAC Rule 3.284 (Drugs, Medicines, Medical Equipment, and Devices) — enclosed with the original letter as the governing rule on medical equipment and device exemptions.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9301L1218B08

Original ruling text

January 4, 1993

Dear *****:

This is in response to your letter dated December 4, 1992, requesting an
opinion regarding the taxability of a communication devise called a FACTS
board that you have designed.

Thank you for the descriptive information and sample of the board. The
statute does not provide an exemption for items used by persons that
cannot communicate verbally. However, there are exemptions for certain
items used by the deaf and legally blind.

See the enclosed Rule 3.284, Drugs, Medicines, Medical Equipment, and
Devices.

This opinion is based on the facts presented. Different facts, though
similar, might lead to different answers. If you have any questions, feel
free to write or call me at 1-800-531-5441, extension 5-330, or
512/463-4600.

Sincerely,

Bettie Peterson
Tax Administration Division