Ezel / Tax Rulings / TX
TX 9609L1430D05 Sales and/or Use Tax (State,Local,MTA) 1996-09-10

Are hearing aid batteries exempt from Texas sales tax, and does a retailer need an exemption certificate to sell them tax-free?

Short answer: Exempt. The Comptroller confirmed that hearing aid batteries are exempt from Texas sales tax as a supply or replacement part for hearing aids, which are themselves exempt by statute. The purchaser does not need to give the retailer an exemption certificate or sign any receipt or affidavit -- the vendor just needs to keep invoices documenting the nontaxed sales.

Apply this to your situation

This page answers the general question as of 1996. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1996
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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.

Subject

Hearing Aids — Batteries

Plain-English summary

A person who regularly buys hearing aid batteries wrote in asking for a letter they could show retailers when making future purchases, to establish that the batteries are exempt from Texas sales tax.

The Comptroller confirmed the exemption: the sale of hearing aids and related supply or replacement parts are exempt from sales tax by statute. Because hearing aid batteries are, in most cases, designed specifically as hearing aid batteries and marketed as such, they fall under that exemption.

Importantly, the letter states the Comptroller's office does not require the purchaser to issue an exemption certificate, or sign any receipt or affidavit in order to receive the exemption at the point of sale. Instead, the responsibility falls on the vendor: the seller must retain records that adequately document the nontaxed sale, and a regular sales invoice describing the item sold is enough documentation for that purpose.

What this means for you

Buyers of hearing aid batteries

You should not be charged Texas sales tax on hearing aid batteries, and a retailer should not require you to sign an exemption certificate, receipt, or affidavit to get that exemption. If a store insists on paperwork from you before selling batteries tax-free, this letter is evidence that none is required.

Retailers who sell hearing aids and batteries

You can sell hearing aid batteries without collecting an exemption certificate from the customer. But you still need to keep adequate records showing the sale was nontaxed -- the letter says a sales invoice describing the item is sufficient documentation to support the exempt treatment if your records are ever reviewed.

Accountants and tax professionals

When advising retail clients that sell hearing aids or related supplies, note that the exemption covers "hearing aids and related supply or replacement parts" generally, not just batteries specifically, and that recordkeeping (not certificate collection) is the compliance requirement here.

Common questions

Q: Do I need to give a retailer an exemption certificate to buy hearing aid batteries tax-free in Texas?
A: No. The letter states the Comptroller's office does not require the purchaser to issue an exemption certificate, or sign any receipt or affidavit, to receive the exemption.

Q: What records does a retailer need to keep to support the exempt sale?
A: The vendor must retain records that adequately document nontaxed sales. The letter says the invoice describing the item sold is adequate documentation.

Q: Are all hearing aid batteries covered, or only certain types?
A: The letter says that "in most cases," the batteries are designed specifically as hearing aid batteries and marketed as such -- and it is on that basis that they qualify as an exempt hearing aid supply or replacement part.

Q: Is this exemption limited to batteries, or does it cover other hearing aid parts too?
A: The letter states more broadly that "the sale of hearing aids and related supply or replacement parts are exempt from sales tax by statute," with batteries given as the specific example addressed in this letter.

Source

Original ruling text

September 10, 1996

Dear *****:

Thank you for your recent letter concerning the taxability of hearing
aid batteries. You asked for a letter from this office that you can
present to retailers when you make future purchases of hearing aid
batteries.

The sale of hearing aids and related supply or replacement parts are
exempt from sales tax by statute. In most cases, the batteries are
designed specifically as hearing aid batteries and are marketed as
such. The Comptroller's office does not require the purchaser to
issue an exemption certificate, or sign any receipt or affidavit in
order to receive this exemption.

The vendor must retain records that adequately document nontaxed
sales. The invoice describing the item sold will be adequate
documentation for this purpose.

Please let me know if I can be of further service to you. If you
require additional assistance, please do not hesitate to contact
Karey Barton, manager of my Tax Policy Division. Karey can be
reached at 1-800-531-5441, extension 3-4987.

Sincerely,

Glen D. Hunt
Director, Research and Policy Development

NOTE: Previous Accession Number 9609556L

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