Will Texas accept the Multistate Tax Commission's Uniform Sales & Use Tax Multi-Jurisdiction Certificate as a valid Texas resale certificate?

Plain-English summary

This letter is the Comptroller's response after reviewing a proposed Multi-Jurisdiction Form Sales & Use Tax Exemption Certificate — the kind of multistate resale certificate used by sellers who deal with buyers across many states. The Comptroller's Tax Policy and Research Division found the form "substantially similar" to Texas's own sales and use tax certificate, but flagged four specific problems that would need to be addressed before Texas could accept it as-is:

1. No seller-location blank. Texas law only allows resale certificates from sellers located in the United States, its possessions, or territories. The proposed form didn't include a blank showing where the person giving the certificate is located (Texas's own "border states" certificate asks for additional information not usually found in a domestic resale certificate).
2. Missing criminal-penalty notice. Texas's own certificate warns that misusing a resale certificate can lead to criminal penalties ranging from a Class C misdemeanor to a second-degree felony. The proposed form should include some indication of criminal penalties, since many states have similar provisions.
3. Manufacturing machinery services/exemption mismatched to "resale." The proposed form's "services purchased" section and its industrial/manufacturing machinery exemption block treated those items as resale-related. Texas doesn't view services performed on manufacturing machinery, or the machinery itself, as purchased "for resale" — those are exempt sales that require a separate exemption certificate, not a resale certificate.
4. Sworn/notarized format not allowed. The proposed certificate was sworn to (i.e., required an oath or verification). Under Texas statutes, a resale certificate cannot be required to be made or submitted under oath, verification, acknowledgment, or affirmation.

The letter, signed by then-Deputy Comptroller Billy Hamilton, invites the recipient to send revised forms for further review.

What this means for you

Multistate sellers using the Multi-Jurisdiction Certificate

If you accept the Multistate Tax Commission's Uniform Sales & Use Tax Multi-Jurisdiction Certificate from customers, be aware that Texas identified specific gaps between that form and what Texas law requires of a valid resale certificate. A seller relying on a certificate that doesn't fix these four issues risks having it treated as invalid for Texas purposes.

Businesses that also buy exempt manufacturing machinery/services

Don't try to claim manufacturing-machinery services or industrial/manufacturing machinery exemptions on a resale certificate. Texas treats those as exempt purchases requiring their own exemption certificate, separate from a resale certificate.

Trade associations or form drafters proposing multistate certificates for use in Texas

Any uniform certificate submitted for use in Texas needs a seller-location field, a Texas-style criminal-penalty notice, a clear separation of resale items from exempt manufacturing-machinery items, and it cannot require a sworn oath, verification, acknowledgment, or affirmation.

Common questions

Q: Does Texas accept the Multi-Jurisdiction Sales & Use Tax Exemption Certificate as submitted?
A: Based on this letter, not without changes — the Comptroller identified four specific concerns that needed to be resolved.

Q: Why does the seller's location matter on a resale certificate in Texas?
A: Texas law only allows resale certificates from sellers located in the United States, its possessions, or territories, so the certificate needs a blank showing where the seller giving the certificate is located.

Q: Can a business use a resale certificate to buy exempt manufacturing machinery or related services?
A: No. Texas doesn't treat those as purchases "for resale" — they're exempt sales that call for a separate exemption certificate.

Q: Can Texas require a resale certificate to be notarized or sworn under oath?
A: No. Under Texas statutes, a resale certificate cannot be required to be made or submitted under oath, verification, acknowledgment, or affirmation.

Q: Can another taxpayer rely on this letter?
A: No. STAR letters generally can only be the basis of a detrimental reliance claim for the taxpayer to whom they were directly issued, and this letter may no longer reflect current Comptroller policy.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9512226L

Original ruling text

December 14, 1995

Dear **:

After I returned to Austin, I asked our Tax Policy and Research Division to
review the Multi-Jurisdiction Form Sales & Use Tax Exemption Certificate. While
the form is substantially similar to the form of our sales and use tax
certificate, we do have four concerns. They are as follows:

1. Because our law only allows resale certificates from sellers located in the
   United States, its possessions, or territories, a blank should be included that
   indicates the location of the person giving the resale certificate (our border
   states caucus certificate requires additional information not usually included
   in a domestic resale certificate).

2. Our form indicates that the improper use of the resale certificate can
   result in criminal penalties ranging from a Class C misdemeanor to a second
   degree felony. Some indication of criminal penalties should be included in the
   proposed form as many states have similar provisions.

3. Under "services purchased", (c) covers services performed on machinery used
   in the manufacturing process and under "Special", the block is for
   industrial/manufacturing machinery exemption. We do not consider such services
   and machinery as purchased for resale. These are exempt sales, and an exemption
   certificate is required rather than a resale certificate.

4. Finally, the proposed certificate is sworn to. Under our Texas Statutes, we
   cannot require a resale certificate to be made or submitted under oath,
   verification, acknowledgment, or affirmation.

I hope this is helpful to you. If you have further questions or wish to send me
revised forms, write me at 111 E. 17th Street, Austin, Texas 78774.

Sincerely,

Billy Hamilton
Deputy Comptroller