October 27, 1988 

Honorable Bob Bullock Opinion No. JR- 973 

Comptroller of Public Accounts 

L.B.J. State Office Building Re: 

Austin, Texas 

Whether a non-profit 

78774 organization that sells 

taxable items must.pay the 

$25 annual fee for a sales 

tax permit (RQ-1503) 

Dear Mr. Bullock: 

You present the following information and ask .the 

following question: 

A non-profit museum and historical society 

has produced and is selling a cookbook. 

While they have been properly collecting 

sales tax on the sales of the cookbook, they 

have asked if the Legislature intended to 

require organizations such as theirs to pay 

the $25 annual sales tax permit fee. 

Since there are numerous non-profit 

organizations who are involved in selling a 

very limited number of items to support their 

activities, I hereby request your official 

opinion as to whether non-profit organizations are required to pay the $25 annual 

sales tax fee. 

You indicate in your request letter that the non-profit 

organization'properly has been collecting the sales tax on 

the items that it sel1s.l You ask whether a non-profit 

1. 

from the 

While section 151.310 of the Tax Code does exempt 

reach of the tax certain qualifying religious, 

educational, 

purchase 

or public service organizations when they 

items that would otherwise be taxable,, the 

(Footnote Continued) 

p. 4950 
Honorable Bob Bullock - Page 2 (JM-973) 

organization must pay the prescribed $25 sales tax permit 

renewal fee in an instance in which it has been issued a 

sales tax permit properly in the first instance and it sells 

items that are taxable. We understand you to refer to an 

organization that falls within subsection (a) of section 

151.310, Tax Code, subdivisions (1) or (21, that ares .not 

selling items pursuant to an auction, as permitted by 

subsections (c) and (d). We conclude that a non-profit 

organization that sells taxable items is required to pay the 

annual $25 fee for a renewal of its sales tax permit. 

The Limited Sales, Excise, and Use Tax is codified at 

chapter 151 of the Tax Code. Section 151.201 of the Tax 

Code governs the issuance of sales tax permits and provides: 

(a) The comptroller shall issue to an 

applicant who qualifies under Section 151.202 

of this code and under Subchapter G of this 

chapter [sections 151.251 - 151.262, 

governing sellers and retailers providing 

security for the payment of the taxes imposed 

by the chapter] and who pays to the 

comptroller the permit fee in the amount 

provided by this section a separate permit 

for each place of business in this state. 

(b) The holder of a permit shall display 

it conspicuously in the place of business to 

which it applies. 

(c) A permit is valid only for the person 

and the place of business to which it applies 

and is nonassignable. 

(d) 3 3 e it . oes 

not annlv to the issuance of a temnorary 

permit under Section 151.252 of this code. 

(Emphasis added.) 

Section 151.202 of the Tax Code governs the application 

for a permit; subsection (a) provides: 

(Footnote Continued) 

exemption does not reach taxable items that such 

organization itself sells, except only as provided ty 

section 151.310. Thus, even if the organizations about 

which you inquire fell within section 151.310, that fact 

would not be dispositive of your question. 

I 

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p. 4951 
, 

Honorable Bob Bullock - Page 3 (JM-973) 

.-. 

A person desiring to be a seller in this 

state shall file with the comptroller an 

application for a permit for each place of 

business. (Emphasis added.) 

%eller" is defined for purposes of the chapter at section 

151.008, which provides: 

(a) 'Seller' or 'retailer' means a person 

engaged in the business of making sales of 

taxable items of a kind the receipts from the 

sale of which are included in the measure of 

the sales or use tax imposed by this chapter. 

(b) 'Seller' and 'retailer include: 

(1) a person in the business of making 

sales at auction of tangible personal 

property owned by 

another: 

the person or by 

(2) a nerson who makes more than two 

sales of taxable items durina a 12-month 

period, including sales made in the 

capacity of an assignee for the benefit of 

creditors or receiver or trustee in 

bankruptcy; and 

(3) a person regarded by the 

comptroller as a seller or retailer under 

Section 151.024 of this code. (Emphasis 

added.) 

We assume that the non-profit organization about which you 

inquire falls within the underscored language of (b)(Z) and 

is a llsellerl* for purposes of this chapter. 

Section 151.2021 of the code governs the issuance of 

renewal permits and provides: 

(a) A permit issued under this subchapter 

is valid for one year from the date of 

issuance or renewal. An application for the 

renewal of a permit must be filed with the 

comptroller not later than the 30th day 

before the expiration date. The comptroller 

on a showing of good cause by the holder may 

permit the~late renewal of a permit. 

p. 4952 
Honorable Bob Bullock - Page 4 (JM-973) 

(b) The fee for the renewal of a Dermit is 

the same as for an initial Dermit as Drovided 

@Y Section 151.201ld) of this cod e. 

(c) For purposes of this section, a permit 

is issued on the date the permit is issued 

under Section 151.201 of this code or 

reissued under Section 151.204, whichever is 

later. The date a temporary permit is issued 

is not considered to be the date the permit 

is issued. 

(d) A permit in effect on the date this 

section becomes effective must be renewed 

under this section before the first 

anniversary of the date on which the permit 

was issued that occurs after the end of the 

month in which the section becomes effective. 

If the date the permit was issued cannot be 

determined, January 1, 1988, is considered to 

be the anniversary date on which the permit 

must be renewed under this subsection. This 

subsection expires January 1, 1990. 

(Emphasis, added.) 

There is no language in either section 151.201 or 

151.2021 of the Tax Code to indicate that the legislature 

intended that there be any exception to the payment of a 

renewal fee for a sales tax permit. Nor is there any 

indication of such legislative intent in the legislative 

history of the bill that added the fee provisions for the 

first time. See Gov't Code, 9 311.023 (Authorizing an 

examination of legislative history in order to determine the 

legislative intent, even in an instance in which the statute 

is not ambiguous.) 

Prior to 1987, section 151.201 of the code required the 

comptroller to issue without charge a sales tax permit to 

each qualifying applicant for each place of business. House 

Bill No. 61, which was enacted at the Second Called Session 

of the ,70th Legislature, amended, inter alia, section 

151.201 of the code and added section 151.2021. Acts 1987, 

70th Lag., 2nd C-S., ch. 5, art. 1, Pt. 5, 05 1, 2, at 22. 

Taken together, the amendments removed from the comptroller 

the authority to issue sales tax permits without charge and 

imposed a fee of $25 for the issuance of the initial permit 

and a fee of $25 for each annual permit renewal. The "Bill 

Analysis" prepared for the House Committee on Nays and Means 

on House Bill No. 61 and for the committee substitute for 

House Bill No. 61 does not indicate any intention on the 

.-. 

p. 4953 
Honorable Bob Bullock - Page 5 (JM-973) 

part of the legislature that 

permit renewal fee. 

there be any exception to the 

Indeed the "Bill not 

mention these specific amendments. 

Analysis" does 

61, 70th Leg., 2nd C.S. (1987). 

Bill Analysis, Tex. H.B. 

Accordingly, we conclude 

sions should be 

that the renewal fee proviconstrued 

instance in 

as written, 

which a 

and that, in an 

non-profit organization properly has 

been issued a sales tax permit because its activities fall 

within the section 151.008 (b)(Z) definition of "seller,~~ 

the organization must pay the $25 renewal fee prescribed by 

section 151.2021 of the Tax Code. 

SUMMARY 

In an instance in which a non-profit 

organization properly has been issued a sales 

tax permit because its activities fall within 

the section 151.008(b)(Z) definition of 

"seller," the organization must pay the $25 

renewal fee prescribed by section 151.2021 of 

the Tax Code. 

JIM MATTOX 

Attorney General of Texas 

MARY KELLER 

First Assistant Attorney General 

LOU MCCREARY 

Executive Assistant Attorney General 

JUDGE ZOLLIE STEAKLEY 

Special Assistant Attorney General 

RICK GILPIN 

Chairman, Opinion Committee 

Prepared by Jim Moellinger 

Assistant Attorney General 

P. 4954