The Tax Policy Division is an important resource for state agencies and state institutions of higher education. We are responsible for writing and revising the administrative rules that govern the taxes and fees that apply to everyone, including state agencies and state institutions of higher education. The Tax Policy Division also handles inquiries regarding taxability by telephone, correspondence, and in person. Additionally, the Tax Policy Division is available to speak at seminars or to conduct classes. Sales tax and use tax are of particular interest to state agencies and state institutions of higher education.
Sales tax is a transaction tax due on the sale of goods and taxable services in Texas.
Use tax is complementary to the sales tax. If taxable items are purchased out of state for use in Texas and are brought or shipped into Texas for storage, use, or consumption, use tax is due. State agencies and state institutions of higher education are exempt from sales and use tax on their purchases. By law, they are not required to complete and submit an exemption certificate to a vendor. A purchase voucher from a state agency or a state institution of higher education is sufficient proof of an exempt purchase.