Texas Sales Tax Exemptions
| Exemption Reason | Form | Issued By | XMPT Delivery |
|---|---|---|---|
| Resale | 01-339 (Front) | Purchaser | Create |
| Exempt Organizations | 01-339 (Back) | Purchaser | Create |
| Direct Payment | 01-919 | Purchaser | Create |
| Hotel Occupancy Tax Exemption | 12-302 | Purchaser | Forward |
Multi-state forms available:
| Form | Issued By | XMPT Delivery | Revision |
|---|---|---|---|
| MTC Uniform Sales Tax Certificate | Purchaser | Create | October 14, 2022 |
| BSC Border States Commission | Purchaser | Create | October 1995 |
Notes:
In Texas, exempt organizations must first apply for exemption status with the Texas Comptroller's office before making tax-free purchases.
Once approved, exempt organizations can claim sales tax exemption by providing sellers with a completed Form 01-339 (Texas Sales and Use Tax Exemption Certificate).
The exemption applies to purchases made by the organization, not to sales made by the organization. Exempt organizations must collect sales tax on taxable items they sell unless a specific exemption applies.
Federal and Texas government entities are automatically exempt from Texas taxes without needing to apply for exempt status.
For nonprofit charitable organizations to qualify for exemption, they must devote all or substantially all activities to the alleviation of poverty, disease, pain, and suffering by providing food, drugs, medical treatment, shelter, clothing, or psychological counseling directly to indigent or similarly deserving individuals.
If a seller does not accept an exemption certificate, the exempt organization can ask the seller for a completed Form 00-985 (Assignment of Right to Refund) to request a refund directly from the Comptroller's office.
Nonprofit organizations with 501(c)(3) status must still apply separately for Texas sales tax exemption.
Hotel tax exemption is only for the state portion of the hotel tax and requires both Form 12-302 and a letter of hotel tax exemption from the Comptroller's office.
An authorized agent can buy items tax-free on behalf of an exempt organization by giving the seller a properly completed exemption certificate in the organization's name.
Non-Texas corporations applying for exemption must include a copy of their formation documents and a current Certificate of Existence issued by their state of incorporation.