Is a for-profit bookstore required to collect sales tax on Bibles and other scriptures published by a nonprofit religious organization?

Plain-English summary

A taxpayer asked the Comptroller about the sales tax treatment of Bibles and other scriptures sold by "Book Company." The Comptroller explained that Tax Code Section 151.312 exempts periodicals and writings that are published and distributed by non-profit religious, charitable, historical, scientific, or similar organizations.

The key point in the letter is what "distributed" means: it includes shipping, marketing, or selling the item — not just the original act of the nonprofit handing it out itself. Because of that broad reading, the exemption travels with the periodical or writing itself, based on who published it, rather than being limited to sales made directly by the nonprofit. As the letter puts it, a for-profit bookstore does not have to collect tax on books or periodicals that are published by a qualifying nonprofit organization, even though the bookstore itself is a for-profit seller.

What this means for you

Bookstores and retailers selling religious materials

If you sell Bibles, scriptures, or other periodicals/writings that were published by a qualifying non-profit religious, charitable, historical, or scientific organization, this letter indicates you do not need to collect Texas sales tax on those items — even though your own business is a for-profit bookstore. The exemption under Tax Code Section 151.312 follows the publication based on who published it, not who is selling it at retail.

Religious and other qualifying nonprofit organizations

If your organization publishes periodicals, writings, or books and distributes them — whether by giving them away, marketing them, selling them directly, or shipping them through a third-party retailer — this letter confirms that "distributed" is read broadly enough to cover all of those methods, preserving the exemption regardless of the distribution channel.

Accountants and tax professionals

This letter is a useful, concise example of how the Comptroller interprets "distributed" under Section 151.312: it is not limited to direct nonprofit-to-consumer transactions, but extends to shipping, marketing, or selling by others, including for-profit retailers. When advising a bookstore or similar retail client on whether tax applies to religious or other qualifying nonprofit-published materials, the origin of the publication (who published it) is the operative fact, not the identity of the retail seller.

Common questions

Q: Does a for-profit bookstore have to collect sales tax on Bibles published by a religious nonprofit?
A: No. Under Tax Code Section 151.312, the exemption for periodicals and writings published and distributed by a qualifying nonprofit organization extends to sales by a for-profit bookstore, because "distributed" includes shipping, marketing, or selling.

Q: What kinds of organizations qualify for this exemption under the letter?
A: The letter describes non-profit religious, charitable, historical, scientific, or similar organizations as the qualifying publishers.

Q: Does the exemption depend on who is selling the item at retail?
A: No. The letter states the exemption extends to any periodical or writing published and sold or merely shipped by a qualifying non-profit organization, regardless of whether the immediate seller is a for-profit business.

Q: What if the retailer itself is not a nonprofit — does that matter?
A: Based on this letter, no. The exemption turns on whether the item was published by a qualifying nonprofit, not on the tax status of the retailer that ultimately sells or ships it.

Citations and references

• Tax Code Section 151.312 — exempts periodicals and writings published and distributed by non-profit religious, charitable, historical, scientific, or similar organizations, as quoted in 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/9404226L

Original ruling text

April 7, 1994

Dear **:

Thank you for your letter of March 22,1994, concerning tax on Bibles and other
scriptures sold by BOOK COMPANY.

Tax Code Section 151.312 exempts periodicals and writings that are published
and distributed by non-profit religious, charitable, historical, scientific or
similar organizations. Because the term "distributed" includes shipping,
marketing or selling, the exemption extends to any periodical or Writing
published and sold or merely shipped by a qualifying non-profit organization.
In other words, a for-profit bookstore does not have to collect tax on books or
periodicals that are published by qualifying organizations.

If you have any questions or need information, my number is 1-800-531-5441 ext.
3-4614. you may write to the Tax Administration Division.

Sincerely,

Adina Whittemore
Tax Administration Division