reglab/statecodes huggingface dataset:
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3101. Amusement Services Exemptions

Sec. 151.3101.  AMUSEMENT SERVICES EXEMPTIONS.  (a)  Amusement services are exempted from the taxes imposed by this chapter only if exclusively provided:
(1)  by this state, a municipality, county, school district, special district, or other political subdivision of this state or the United States;
(2)  in a place that:
(A)  is designated as a Recorded Texas Historic Landmark by the Texas Historical Commission;  or
(B)  is included in the National Register of Historic Places;
(3)  by a nonprofit corporation or association, other than an entity described by Section 501(c)(7), Internal Revenue Code of 1986, if the proceeds do not go to the benefit of an individual except as a part of the services of a purely public charity;
(4)  by a nonprofit corporation organized under the laws of this state for the purpose of encouraging agriculture by the maintenance of public fairs and exhibitions of livestock and no individual received a private benefit;  or
(5)  by an educational, religious, law enforcement association, or charitable organization.
(b)  A musical concert performance or other amusement that is not solely for educational purposes is not exclusively provided under Subsection (a)(1) if an entity listed in that subsection contracts with an entity not listed in that subsection for the provision of the amusement.
(b-1)  An amusement service remains exclusively provided under Subsection (a)(3) or (5) if an entity described by Subsection (a)(3) or (5) contracts with another entity not listed in or described by Subsection (a) to provide touring theatrical productions:
(1)  subject to a contract with the other entity for:
(A)  a term of at least five years; and
(B)  at least five presentations each year; and
(2)  held at a location either owned by, or leased or licensed for a term of at least one year to, the contracting entity described by Subsection (a)(3) or (5).
(c)  In this section:
(1)  "Educational organization" includes an entity described by Section 61.003(8) or (15), Education Code.
(2)  "Theatrical production" means a live staged play, musical play, opera, or ballet.
(d)  An amusement service is exclusively provided under Subsection (a)(4) if the amusement service is provided at a "designated facility" defined in Section 334.401, Local Government Code, which is also a qualified project as defined in Section 351.1015(a)(5)(B) of this code.
Added by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 7, Sec. 11, eff. Oct. 2, 1984.  Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 22;  Acts 1989, 71st Leg., ch. 744, Sec. 1, eff. Oct. 1, 1989;  Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 14.061;  Acts 1999, 76th Leg., ch. 1467, Sec. 2.16, eff. Oct. 1, 1999.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 229 (H.B. 1965), Sec. 1, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 543 (H.B. 3386), Sec. 1, eff. October 1, 2019.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3102. Sale by Nonprofit Organization at County Fair

Sec. 151.3102.  SALE BY NONPROFIT ORGANIZATION AT COUNTY FAIR.  (a)  The sale of a taxable item is exempt from the taxes imposed by this chapter if:
(1)  the seller or retailer is a county fair association or another nonprofit organization that is exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, by being listed as an exempt organization in Section 501(c)(3) of that code;
(2)  the sale takes place at a county fair operated by a county fair association on property owned by the county; and
(3)  the purchaser is a person attending or participating in the fair.
(b)  In this section:
(1)  "County fair association" means an organization that is exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, by being listed as an exempt organization in Section 501(c)(3) of that code and that organizes a county fair that is primarily for the exhibition of local horticultural or agricultural products or livestock. The term does not include:
(A)  an association that holds a license issued after January 1, 2001, under Subtitle A-1, Title 13, Occupations Code (Texas Racing Act); or
(B)  an association that organizes events other than a county fair, including an exhibition of arts and crafts or a state fair.
(2)  "Livestock" includes turkeys, domesticated fowl, cows, sheep, swine, horses, mules, donkeys, and goats. The term does not include domesticated animals such as dogs, cats, guinea pigs, hamsters, or other similar animals.
Added by Acts 2019, 86th Leg., R.S., Ch. 318 (H.B. 2684), Sec. 1, eff. September 1, 2019.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 285 (H.B. 3799), Sec. 1, eff. October 1, 2021.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3105. Bingo Equipment Purchased by Certain Organizations

Sec. 151.3105.  BINGO EQUIPMENT PURCHASED BY CERTAIN ORGANIZATIONS.  Bingo equipment, as defined by Section 2001.002, Occupations Code, is exempted from the taxes imposed by this chapter if the bingo equipment is:
(1)  purchased by an organization licensed to conduct bingo under Chapter 2001, Occupations Code, that is exempt from the payment of federal income taxes under Section 501(a), Internal Revenue Code of 1986, as amended, by being listed as an exempt organization under Section 501(c)(3), (4), (8), (10), or (19), Internal Revenue Code of 1986, as amended;  and
(2)  used exclusively to conduct bingo authorized under Chapter 2001, Occupations Code.
Added by Acts 2003, 78th Leg., ch. 1114, Sec. 32, eff. Jan. 1, 2004.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.311. Taxable Items Incorporated Into or Used for Improvement of Realty of an Exempt Entity

Sec. 151.311.  TAXABLE ITEMS INCORPORATED INTO OR USED FOR IMPROVEMENT OF REALTY OF AN EXEMPT ENTITY.  (a)  The purchase of tangible personal property for use in the performance of a contract for an improvement to realty for an organization exempted under Section 151.309 or 151.310 of this code is exempt if the tangible personal property is incorporated into realty in the performance of the contract.
(b)  The purchase of tangible personal property, other than machinery or equipment and its accessories and repair and replacement parts, for use in the performance of a contract for an improvement to realty for an organization exempted under Section 151.309 or 151.310 of this code is exempt if the tangible personal property is:
(1)  necessary and essential for the performance of the contract;  and
(2)  completely consumed at the job site.
(c)  The purchase of a taxable service for use in the performance of a contract for an improvement to realty that is performed for an organization exempted under Section 151.309 or 151.310 of this code is exempt if the service is performed at the job site and if:
(1)  the contract expressly requires the specific service to be provided or purchased by the person performing the contract;  or
(2)  the service is integral to the performance of the contract.
(d)  For purposes of this section, tangible personal property is completely consumed if after being used once for its intended purpose it is used up or destroyed.  Tangible personal property that is rented or leased for use in the performance of the contract cannot be completely consumed for purposes of this section.
Acts 1981, 67th Leg., p. 1561, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 12, Sec. 1, eff. Oct. 2, 1984;  Acts 1985, 69th Leg., ch. 69, art. 2, Sec. 1, eff. July 30, 1985;  Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 14.07;  Acts 1993, 73rd Leg., ch. 831, Sec. 1, eff. Oct. 1, 1993.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3111. Services on Certain Exempted Personal Property

Sec. 151.3111.  SERVICES ON CERTAIN EXEMPTED PERSONAL PROPERTY.  (a)  Subject to Section 151.1551, a service that is performed on tangible personal property that, if sold, leased, or rented, at the time of the performance of the service, would be exempted under this chapter because of the nature of the property, its use, or a combination of its nature and use, is exempted from this chapter.
(b)  Subsection (a) does not apply to the performance of a service on:
(1)  tangible personal property that would be exempted solely because of the exempt status of the seller of the property;
(2)  tangible personal property that is exempted solely because of the application of Section 151.303, 151.304, or 151.306;
(3)  motor vehicles, trailers, or semitrailers as defined, taxed, or exempted by Chapter 152;  or
(4)  a taxable boat or motor as defined by Section 160.001.
(5)  Deleted by Acts 1999, 76th Leg., ch. 631, Sec. 13, eff. Oct. 1, 2001.
(6)  Tangible personal property exempt under Section 151.326.
(c)  A taxable service performed on a motor vehicle, trailer, or semitrailer exempted under Section 152.086, 152.087, or 152.088 of this code is exempted from the taxes imposed by this chapter.  A taxable service performed on a motor vehicle held for rental in the regular course of business, but not rented, or held for sale in the regular course of business is exempted from the taxes imposed by this chapter.
Added by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 7, Sec. 12, eff. Oct. 2, 1984.  Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.03, eff. Oct. 1, 1991;  Acts 1995, 74th Leg., ch. 1000, Sec. 11, eff. Oct. 1, 1995;  Acts 1999, 76th Leg., ch. 394, Sec. 4, eff. June 3, 1999;  Acts 1999, 76th Leg., ch. 631, Sec. 13, eff. Oct. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 225 (H.B. 268), Sec. 2, eff. September 1, 2011.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.312. Periodicals and Writings of Religious, Philanthropic, Charitable, Historical, Scientific, and Similar Organizations

Sec. 151.312.  PERIODICALS AND WRITINGS OF RELIGIOUS, PHILANTHROPIC, CHARITABLE, HISTORICAL, SCIENTIFIC, AND SIMILAR ORGANIZATIONS.  Periodicals and writings, including those presented on audio tape, videotape, and computer disk, that are published and distributed by a religious, philanthropic, charitable, historical, scientific, or other similar organization that is not operated for profit, but excluding an educational organization, are exempted from the taxes imposed by this chapter.
Acts 1981, 67th Leg., p. 1561, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1989, 71st Leg., ch. 231, Sec. 5, eff. Aug. 28, 1989;  Acts 1999, 76th Leg., ch. 1467, Sec. 2.17, eff. Oct. 1, 1999.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3131. Firearm Safety Equipment

Sec. 151.3131.  FIREARM SAFETY EQUIPMENT.  (a)  In this section, "firearm safety equipment" means a gun lock box, a gun safe, a barrel lock, a trigger lock, a firearm safety training manual or electronic publication, or another item designed to ensure the safe handling or storage of a firearm.
(b)  The sale, storage, use, or other consumption of firearm safety equipment is exempted from the taxes imposed by this chapter.
Added by Acts 2021, 87th Leg., R.S., Ch. 554 (S.B. 313), Sec. 1, eff. September 1, 2021.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3132. Feminine Hygiene Products

Sec. 151.3132.  FEMININE HYGIENE PRODUCTS.  (a)  In this section, "feminine hygiene product" means a tampon, sanitary napkin, menstrual cup, menstrual sponge, menstrual pad, or other similar tangible personal property sold for the principal purpose of feminine hygiene in connection with the menstrual cycle or postpartum care.
(b)  The sale, storage, use, or other consumption of a feminine hygiene product is exempted from the taxes imposed by this chapter.
Added by Acts 2023, 88th Leg., R.S., Ch. 1056 (S.B. 379), Sec. 2, eff. September 1, 2023.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3133. Maternity Clothing

Sec. 151.3133.  MATERNITY CLOTHING.  (a)  In this section, "maternity clothing" means clothing labeled for a woman to wear during pregnancy that is designed to accommodate the changes in body size and shape that occur as a result of a pregnancy or to facilitate breastfeeding.  The term includes a nursing bra or nursing pad.
(b)  The sale, storage, use, or other consumption of an article of maternity clothing is exempted from the taxes imposed by this chapter.
Added by Acts 2023, 88th Leg., R.S., Ch. 1056 (S.B. 379), Sec. 2, eff. September 1, 2023.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3134. Breast Milk Pumping Products

Sec. 151.3134.  BREAST MILK PUMPING PRODUCTS.  (a) In this section:
(1)  "Breast milk pumping product" means a breast pump, a breast milk storage bag or other container designed to store pumped breast milk, or a pumping bra.
(2)  "Breast pump" means an electrically or manually controlled device designed or marketed to be used to express milk from a human breast during lactation, including accessories necessary for use of the device such as flanges and tubing.  The term includes any battery, AC adapter, or other power supply unit packaged and sold with the device to power the device.
(b)  The sale, storage, use, or other consumption of a breast milk pumping product is exempted from the taxes imposed by this chapter.
Added by Acts 2023, 88th Leg., R.S., Ch. 1056 (S.B. 379), Sec. 2, eff. September 1, 2023.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3135. Baby Bottles

Sec. 151.3135.  BABY BOTTLES.  (a)  In this section, "baby bottle" means a bottle fitted with a nipple for giving milk and other drinks to a young child.
(b)  The sale, storage, use, or other consumption of a baby bottle is exempted from the taxes imposed by this chapter.
Added by Acts 2023, 88th Leg., R.S., Ch. 1056 (S.B. 379), Sec. 2, eff. September 1, 2023.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3141. Food Stamp Purchases

Sec. 151.3141.  FOOD STAMP PURCHASES.  (a)  Items purchased in whole or in part with food coupons issued under the food stamp program from a business approved for participation in the food stamp program are exempted from the taxes imposed by this chapter.  The exemption applies only to items permitted by law to be purchased with food coupons under the food stamp program.  If two or more items are purchased together and paid for with a combination of food stamps and other means of payment, for purposes of this section the food stamps are applied first to the purchase of items that would be taxable under this chapter in the absence of the exemption provided by this section.
(b)  For purposes of this section, "food stamp program" means the program operated under 7 U.S.C. Chapter 51.
(c)  This section and Subsection (e) of Section 151.412 of this code expire on the first day of the next calendar quarter after the comptroller certifies and publishes in the Texas Register notice of the certification that federal law no longer prohibits a state from participating in the food stamp program if the secretary of the United States Department of Agriculture determines that state or local sales taxes are collected on items purchased with food coupons issued under the food stamp program or that for any other reason the exemption provided by this section is no longer required for this state to participate in the food stamp program.  The comptroller shall make a certification under this subsection if information sufficient to make the determination becomes known to the comptroller.
Added by Acts 1987, 70th Leg., ch. 1116, Sec. 1, eff. Oct. 1, 1987.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.315. Water

Sec. 151.315.  WATER.  Water is exempted from the taxes imposed by this chapter.
Acts 1981, 67th Leg., p. 1563, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3171. Sulphur

Sec. 151.3171.  SULPHUR.  Sulphur is exempted from the taxes imposed by this chapter.
Added by Acts 2015, 84th Leg., R.S., Ch. 470 (S.B. 757), Sec. 8, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3182. Certain Property Used in Research and Development Activities; Reporting of Estimates and Evaluation

Sec. 151.3182.  CERTAIN PROPERTY USED IN RESEARCH AND DEVELOPMENT ACTIVITIES; REPORTING OF ESTIMATES AND EVALUATION.  (a)  In this section:
(1)  "Depreciable tangible personal property" means tangible personal property that:
(A)  has a useful life that exceeds one year; and
(B)  is subject to depreciation under:
(i)  generally accepted accounting principles; or
(ii)  Section 167 or 168, Internal Revenue Code.
(2)  "Internal Revenue Code" has the meaning assigned by Section 171.651.
(3)  "Qualified research" has the meaning assigned by Section 41, Internal Revenue Code.
(b)  The sale, storage, or use of depreciable tangible personal property directly used in qualified research is exempted from the taxes imposed by this chapter if the property is sold, leased, or rented to, or stored or used by, a person who:
(1)  is engaged in qualified research; and
(2)  will not, as a taxable entity as defined by Section 171.0002 or as a member of a combined group that is a taxable entity, claim a credit under Subchapter M, Chapter 171, on a franchise tax report for the period during which the sale, storage, or use occurs.
(c)  Before the beginning of each regular session of the legislature, the comptroller shall submit to the legislature and the governor:
(1)  an estimate of the total number of persons who received exemptions under this section and an estimate of the total amount of those exemptions; and
(2)  an evaluation of the effect of the exemption under this section, in combination with the credit authorized by Subchapter M, Chapter 171, that is conducted by an independent researcher at a center for research authorized by Section 1.005, Education Code, on:
(A)  the amount of qualified research performed in this state;
(B)  employment in research and development in this state;
(C)  economic activity in this state; and
(D)  state tax revenues.
(d)  The comptroller shall require a person who receives an exemption under this section to complete a form to provide the information necessary for the comptroller to make the evaluation required by Subsection (c)(2).  The information provided on the form is confidential and not subject to disclosure under Chapter 552, Government Code.
(e)  The comptroller shall provide the estimates and evaluation required by Subsection (c) as part of the report required by Section 403.014, Government Code.
(f)  This section expires December 31, 2026.
Added by Acts 2013, 83rd Leg., R.S., Ch. 1266 (H.B. 800), Sec. 2, eff. January 1, 2014.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3186. Property Used in Cable Television, Internet Access, or Telecommunications Services

Sec. 151.3186.  PROPERTY USED IN CABLE TELEVISION, INTERNET ACCESS, OR TELECOMMUNICATIONS SERVICES.  (a) In this section, "provider" means a provider of cable television service, Internet access service, or telecommunications services.
(b)  A provider is entitled to a refund of the tax imposed by this chapter on the sale, lease, or rental or storage, use, or other consumption of tangible personal property if:
(1)  the property is sold, leased, or rented to or stored, used, or consumed by a provider or a subsidiary of a provider; and
(2)  the property is directly used or consumed by the provider or subsidiary described by Subdivision (1) in or during:
(A)  the distribution of cable television service;
(B)  the provision of Internet access service; or
(C)  the transmission, conveyance, routing, or reception of telecommunications services.
(c)  Notwithstanding Subsection (b), property directly used or consumed in or during the provision, creation, or production of a data processing service or information service is not eligible for a refund under this section.
(d)  The amount of the refund to which a provider or subsidiary, as described by Subsection (b)(1), is entitled under this section for a calendar year is equal to:
(1)  the amount of the tax paid by the provider or subsidiary during the calendar year on property eligible for a refund under this section, if the total amount of tax paid by all providers and subsidiaries described by Subsection (b)(1) that are eligible for a refund under this section is not more than $50 million for the calendar year; or
(2)  a pro rata share of $50 million, if the total amount of tax paid by all providers and subsidiaries described by Subsection (b)(1) that are eligible for a refund under this section is more than $50 million for the calendar year.
(e)  The refund provided by this section does not apply to the taxes imposed under Subtitle C, Title 3.
Added by Acts 2013, 83rd Leg., R.S., Ch. 1272 (H.B. 1133), Sec. 1, eff. September 1, 2013.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.320. Magazines

Sec. 151.320.  MAGAZINES.  (a)  Subscriptions to magazines that are sold for a semiannual or longer period and are entered as second class mail are exempted from the taxes imposed by this chapter.
(b)  "Magazine" means a publication that is usually paperbacked and sometimes illustrated, that appears at a regular interval, and that contains stories, articles, and essays by various writers and advertisements.  "Magazine" does not mean the publication of current information which is taxable pursuant to Section 151.0038 of this code as an "information service."
Added by Acts 1987, 70th Leg., ch. 378, Sec. 2, eff. Oct. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 1031, Sec. 22, eff. Sept. 1, 1993.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.321. University and College Student Organizations

Sec. 151.321.  UNIVERSITY AND COLLEGE STUDENT ORGANIZATIONS.  (a)  A taxable item sold by a qualified student organization and for which the sales price is $5,000 or less, is exempted from the taxes imposed by Subchapter C, except that a taxable item manufactured by or donated to the organization is exempt from the taxes imposed by Subchapter C  regardless of sales price unless sold to the donor, if the student organization:
(1)  sells the item at a sale that may last for one day only and the primary purpose of which is to raise funds for the organization;  and
(2)  holds not more than one sale described by Subdivision (1) each month for which an exemption is claimed for an item sold.
(b)  In each calendar year, the first $5,000 of a qualified student organization's total receipts from sales of taxable items not otherwise exempt under Subsection (a) is exempt from the taxes imposed by Subchapter C.
(c)  A student organization qualifies for the exemptions under Subsections (a) and (b) if the student organization:
(1)  is affiliated with an institution of higher education as defined by Section 61.003, Education Code, or a private or independent college or university that is located in this state and that is accredited by a recognized accrediting agency under Section 61.003, Education Code;
(2)  has as its primary purpose a purpose other than engaging in business or performing an activity designed to make a profit;  and
(3)  files a certification with the comptroller as required by Subsection (d).
(d)  A student organization must file with the comptroller a certification issued by the institution, college, or university described in Subsection (c)(1) showing that the organization is affiliated with the institution, college, or university.
(e)  The storage, use, or consumption of a taxable item acquired tax-free under this section is exempted from the use tax imposed by Subchapter D  until the item is resold or subsequently transferred.
Added by Acts 1995, 74th Leg., ch. 155, Sec. 1, eff. Oct. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 1040, Sec. 23, eff. Oct. 1, 1997;  Acts 1999, 76th Leg., ch. 1467, Sec. 2.21, eff. Oct. 1, 1999;  Acts 2001, 77th Leg., ch. 58, Sec. 1, eff. Oct. 1, 2001.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.322. Containers

Sec. 151.322.  CONTAINERS.  (a)  The following are exempted from the taxes imposed by this chapter:
(1)  a container sold with its contents if the sales price of the contents is not taxed under this chapter;
(2)  a nonreturnable container sold without contents to a person who fills the container and sells the contents and the container together;  and
(3)  a returnable container sold with its contents or resold for refilling.
(b)  In this section:
(1)  "Returnable container" means a container of a kind customarily returned for reuse by the buyer of the contents.
(2)  "Nonreturnable container" means a container other than a returnable container.
(3)  "Container" means glass, plastic, or metal bottles, cans, barrels, and cylinders, but does not include any item of a type described in Section 151.302(d).
Acts 1981, 67th Leg., p. 1566, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 14.10.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.323. Certain Telecommunications Services

Sec. 151.323.  CERTAIN TELECOMMUNICATIONS SERVICES.  (a)  There are exempted from the taxes imposed by this chapter the receipts from the sale, use, or other consumption in this state of:
(1)  long-distance telecommunications services that are not both originated from and billed to a telephone number or billing or service address within Texas;
(2)  access to a local exchange telephone company's network by a regulated provider of telecommunications services;  and
(3)  broadcasts, other than cable television service, by commercial radio or television stations licensed or regulated by the Federal Communications Commission.
(b)  The exemption provided by this section does not apply to mobile telecommunications services.
Acts 1981, 67th Leg., p. 1566, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1985, 69th Leg., ch. 206, Sec. 9, eff. Oct. 1, 1985;  Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 27;  Acts 2003, 78th Leg., ch. 209, Sec. 22, eff. Oct. 1, 2003.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.324. Equipment Used Elsewhere for Mineral Exploration or Production

Sec. 151.324.  EQUIPMENT USED ELSEWHERE FOR MINERAL EXPLORATION OR PRODUCTION.  (a)  The following items are exempted from the sales tax imposed by Subchapter C of this chapter:
(1)  drill pipe, casing, tubing, and other pipe used for the exploration for or production of oil, gas, sulphur, or other minerals offshore not in this state;  and
(2)  tangible personal property exclusively used for the exploration for or production of oil, gas, sulphur, or other minerals offshore not in this state.
(b)  Drilling equipment that is used for the exploration for or production of oil, gas, sulphur, or other minerals, that is built for exclusive use outside this state, and that is, on completion, removed forthwith from this state is exempted from the taxes imposed by this chapter.
(c)  The delivery of items exempted by this section to the purchaser or lessee in this state does not disqualify the purchaser or lessee from the exemption if the property is removed from the state by any means, including by the use of the purchaser's or lessee's own facilities.
(d)  The shipment to a place in this state of equipment exempted by this section for further assembly or fabrication does not disqualify the purchaser or lessee from the exemption if on completion of the further assembly or fabrication the equipment is removed forthwith from this state.  This section applies to a sale that may occur when the equipment exempted is further assembled or fabricated if on completion the equipment is removed forthwith from the state.
Acts 1981, 67th Leg., p. 1567, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.325. Basic Fee for Internet Access Service

Sec. 151.325.  BASIC FEE FOR INTERNET ACCESS SERVICE.  (a)  The sale, use, or other consumption in this state of Internet access service is exempted from the taxes imposed by this chapter in an amount not to exceed the first $25 of a monthly charge.
(b)  The exemption provided by this section applies without regard to:
(1)  whether the Internet access service is bundled with another service, including any other taxable service listed in Section 151.0101(a);  or
(2)  the billing period used by the service provider.
(c)  The exemption in this section applies to the total sales price the service provider charges for Internet access to a purchaser, without regard to whether the service provider charges one lump-sum amount or separately bills the purchaser for each user.
Added by Acts 1999, 76th Leg., ch. 394, Sec. 6, eff. Oct. 1, 1999.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.326. Clothing and Footwear for Limited Period

Sec. 151.326.  CLOTHING AND FOOTWEAR FOR LIMITED PERIOD.  (a)  The sale of an article of clothing or footwear designed to be worn on or about the human body is exempted from the taxes imposed by this chapter if:
(1)  the sales price of the article is less than $100; and
(2)  the sale takes place during a period beginning at 12:01 a.m. on the Friday before the 15th day preceding the uniform date prescribed by Section 25.0811(a), Education Code, without regard to any exception authorized by that section, before which a school district may not begin instruction for the school year, and ending at 12 midnight on the following Sunday.
(b)  This section does not apply to:
(1)  any special clothing or footwear that is primarily designed for athletic activity or protective use and that is not normally worn except when used for the athletic activity or protective use for which it is designed;
(2)  accessories, including jewelry, handbags, luggage, umbrellas, wallets, watches, and similar items carried on or about the human body, without regard to whether worn on the body in a manner characteristic of clothing; and
(3)  the rental of clothing or footwear.
Added by Acts 1999, 76th Leg., ch. 394, Sec. 7, eff. June 3, 1999.  Amended by Acts 2003, 78th Leg., ch. 1310, Sec. 121(27), eff. Oct. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 931 (H.B. 3314), Sec. 10(a), eff. June 15, 2007.
Acts 2007, 80th Leg., R.S., Ch. 1266 (H.B. 3319), Sec. 7, eff. June 15, 2007.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 33.01, eff. September 28, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 525 (S.B. 485), Sec. 1, eff. June 14, 2013.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.327. School Supplies and School Backpacks Before Start of School

Sec. 151.327.  SCHOOL SUPPLIES AND SCHOOL BACKPACKS BEFORE START OF SCHOOL.  (a)  In this section:
(1)  "Backpack" means a messenger bag, book bag, or a pack with straps that a person wears on the person's back, including a backpack with wheels if the backpack can also be worn on the back.  The term does not include an item that is commonly considered luggage, a briefcase, an athletic bag, a duffle bag, a gym bag, a computer bag, a purse, or a framed backpack.
(2)  "School supply" has the meaning assigned by the Streamlined Sales and Use Tax Agreement adopted November 12, 2002, including all amendments made to the agreement on or before December 14, 2006.
(a-1)  The sale or storage, use, or other consumption of a school supply or a school backpack is exempted from the taxes imposed by this chapter if the school supply or backpack is purchased:
(1)  for use by a student in a public or private elementary or secondary school;
(2)  during the period described by Section 151.326(a)(2); and
(3)  for a sales price of less than $100.
(b)  A retailer is not required to obtain an exemption certificate stating that school supplies or school backpacks are purchased for use by students in a public or private elementary or secondary school unless the school supplies or backpacks are purchased in a quantity that indicates that the school supplies or backpacks are not purchased for use by students in a public or private elementary or secondary school.
Added by Acts 2007, 80th Leg., R.S., Ch. 931 (H.B. 3314), Sec. 10(b), eff. June 15, 2007.
Added by Acts 2007, 80th Leg., R.S., Ch. 1266 (H.B. 3319), Sec. 8, eff. June 15, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1126 (H.B. 1801), Sec. 1, eff. July 1, 2009.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.329. Certain Ships and Ship Equipment

Sec. 151.329.  CERTAIN SHIPS AND SHIP EQUIPMENT.  The following items are exempted from the taxes imposed by this chapter:
(1)  materials, equipment, and machinery that enter into and become component parts of a ship or vessel that is of eight or more tons displacement and is:
(A)  used exclusively and directly in a commercial enterprise, including commercial fishing;  or
(B)  used commercially as a vessel for pleasure fishing by individuals as paying passengers on the vessel;
(2)  a ship or vessel of eight or more tons displacement, that is used exclusively and directly in a commercial enterprise and is sold by the vessel's builder;
(3)  materials and labor used in repairing, renovating, or converting a ship or vessel that is of eight or more tons displacement and that is used exclusively and directly in a commercial enterprise;
(4)  materials and supplies purchased by the owner or operator of a ship or vessel operating exclusively in foreign or interstate coastal commerce if the materials and supplies:
(A)  are loaded on the ship or vessel and used in the maintenance and operation of the ship or vessel;  or
(B)  enter into and become component parts of the ship or vessel;  and
(5)  materials and supplies purchased by a person providing stevedoring services for a ship or vessel operating exclusively in foreign or interstate coastal commerce if the materials and supplies are loaded aboard the ship or vessel and are not removed before the departure of the ship or vessel.
Acts 1981, 67th Leg., p. 1568, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1995, 74th Leg., ch. 230, Sec. 1, eff. July 1, 1995.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3291. Boats and Boat Motors

Sec. 151.3291.  BOATS AND BOAT MOTORS.  (a)  The sale, other than the lease or rental, and the storage, use, or other consumption of a taxable boat or motor is exempt from the taxes imposed by this chapter.
(b)  In this section, "taxable boat or motor" has the meaning assigned by Section 160.001.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.02, eff. Oct. 1, 1991.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.331. Rolling Stock; Train Fuel and Supplies

Sec. 151.331.  ROLLING STOCK;  TRAIN FUEL AND SUPPLIES.  (a)  Rolling stock, locomotives, and fuel and supplies essential to the operation of locomotives and trains are exempted from the taxes imposed by this chapter.
(b)  Electricity, natural gas, and other fuels used or consumed predominately in the repair, maintenance, or restoration of rolling stock are exempt from the taxes imposed by this chapter.
Acts 1981, 67th Leg., p. 1569, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1995, 74th Leg., ch. 1025, Sec. 1, eff. Oct. 1, 1995.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.332. Certain Sales by Senior Citizen Organizations

Sec. 151.332.  CERTAIN SALES BY SENIOR CITIZEN ORGANIZATIONS.  (a)  There are exempted from the sales tax imposed by Subchapter C of this chapter  the receipts from the sale of tangible personal property that has been manufactured, produced, made, or assembled exclusively by a person 65 years old or older and that is sold at a qualified sale.  A sale under this section qualifies for the exemption only if it is made as a part of a fund-raising drive held or sponsored by a nonprofit organization created for the sole purpose of providing assistance to elderly persons.  All of the net proceeds derived from sales made during the fund-raising drive must go to the organization, to the persons who manufactured, produced, made, or assembled the items sold, or to both.  An organization created for the purpose of providing assistance to the elderly is entitled to conduct not more than four separate tax exempt fund-raising drives during each calendar year, and the aggregate number of days during a calendar year during which one or more tax exempt fund-raising drives may be held by the organization is 20.  Any sale occurring after the end of the fourth separate fund-raising drive in a calendar year or after the 20th day on which a fund-raising drive is held in a calendar year is not exempted by this section.
(b)  There are exempted from the taxes imposed by this chapter the use, storage, or other consumption in this state of tangible personal property by a purchaser at a sale exempted by this section.
Added by Acts 1981, 67th Leg., p. 2771, ch. 752, Sec. 7(b), eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.333. Energy-Efficient Products

Sec. 151.333.  ENERGY-EFFICIENT PRODUCTS.  (a)  In this section, "energy-efficient product" means a product that has been designated as an Energy Star qualified product under the Energy Star program jointly operated by the United States Environmental Protection Agency and the United States Department of Energy.
(b)  This section applies only to the following energy-efficient products:
(1)  an air conditioner the sales price of which does not exceed $6,000;
(2)  a clothes washer;
(3)  a ceiling fan;
(4)  a dehumidifier;
(5)  a dishwasher;
(6)  an incandescent or fluorescent lightbulb;
(7)  a programmable thermostat; and
(8)  a refrigerator the sales price of which does not exceed $2,000.
(c)  The sale of an energy-efficient product to which this section applies is exempted from the taxes imposed by this chapter if the sale takes place during a period beginning at 12:01 a.m. on the Saturday preceding the last Monday in May (Memorial Day) and ending at 11:59 p.m. on the last Monday in May.
Added by Acts 2007, 80th Leg., R.S., Ch. 939 (H.B. 3693), Sec. 16, eff. September 1, 2007.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3335. Water-Efficient Products

Sec. 151.3335.  WATER-EFFICIENT PRODUCTS.  (a)  In this section:
(1)  "Water-conserving product":
(A)  means tangible personal property that:
(i)  is used on private residential property and is not used for business or trade; and
(ii)  when used or planted in an outdoor residential property, may result in:
(a)  water conservation or groundwater retention;
(b)  water table recharge; or
(c)  a decrease in ambient air temperature that limits water evaporation; and
(B)  includes:
(i)  a soaker or drip-irrigation hose;
(ii)  a moisture control for a sprinkler or irrigation system;
(iii)  mulch;
(iv)  a rain barrel or an alternative rain and moisture collection system; and
(v)  a permeable ground cover surface that allows water to reach underground basins, aquifers, or water collection points.  "WaterSense product" means a product that has been designated as a WaterSense certified product under the WaterSense program operated by the United States Environmental Protection Agency, or a similar successor program.
(b)  The sale of a water-conserving product or WaterSense product is exempted from the taxes imposed by this chapter if the sale takes place during the period described by Section 151.333(c).
Added by Acts 2015, 84th Leg., R.S., Ch. 1197 (S.B. 1356), Sec. 1, eff. October 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.334. Components of Tangible Personal Property Used in Connection With Sequestration of Carbon Dioxide

Sec. 151.334.  COMPONENTS OF TANGIBLE PERSONAL PROPERTY USED IN CONNECTION WITH SEQUESTRATION OF CARBON DIOXIDE.  Components of tangible personal property used in connection with an advanced clean energy project, as defined by Section 382.003, Health and Safety Code, or a clean energy project, as defined by Section 120.001, Natural Resources Code, are exempted from the taxes imposed by this chapter if:
(1)  the components are installed to capture carbon dioxide from an anthropogenic emission source, transport or inject carbon dioxide from such a source, or prepare carbon dioxide from such a source for transportation or injection; and
(2)  the carbon dioxide is sequestered in this state:
(A)  as part of an enhanced oil recovery project that qualifies for a tax rate reduction under Section 202.0545, as provided by Subsection (c) of that section; or
(B)  in a manner and under conditions that create a reasonable expectation that at least 99 percent of the carbon dioxide will remain sequestered from the atmosphere for at least 1,000 years.
Added by Acts 2009, 81st Leg., R.S., Ch. 1109 (H.B. 469), Sec. 4, eff. September 1, 2009.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.336. Certain Coins and Precious Metals

Sec. 151.336.  CERTAIN COINS AND PRECIOUS METALS.   The sale of gold, silver, or numismatic coins or of platinum, gold, or silver bullion is exempted from the taxes imposed by this chapter.
Added by Acts 1989, 71st Leg., ch. 231, Sec. 7, eff. Aug. 28, 1989.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 844 (H.B. 78), Sec. 1, eff. October 1, 2013.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.337. Sales by or to Indian Tribes

Sec. 151.337.  SALES BY OR TO INDIAN TRIBES.  (a)  A taxable item sold, leased, or rented to, or stored, used, or consumed by, a tribal council or a business owned by a tribal council of the Alabama-Coushatta Indian Tribe, the Tigua Indian Tribe, or the Texas Band of Kickapoo Indians is exempted from the taxes imposed by this chapter.
(b)  A taxable item sold, leased, or rented by a tribal council or a business owned by a tribal council of the Alabama-Coushatta Indian Tribe, the Tigua Indian Tribe, or the Texas Band of Kickapoo Indians is exempted from the taxes imposed by this chapter if the item is:
(1)  made by a member of the Indian tribe;
(2)  a cultural artifact of the Indian tribe;  and
(3)  sold at a location within the boundaries of a reservation or of trust land held by such an Indian tribe.
(c)  The storage, use, or consumption of a taxable item acquired in a transaction exempted by Subsection (b) of this section is exempted from the use tax imposed by Subchapter D of this chapter  until the item is resold or subsequently transferred.
Added by Acts 1983, 68th Leg., p. 4870, ch. 859, Sec. 2, eff. Sept. 1, 1983.  Amended by Acts 1985, 69th Leg., ch. 717, Sec. 11, eff. Sept. 1, 1985.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.338. Environment and Conservation Services

Sec. 151.338.  ENVIRONMENT AND CONSERVATION SERVICES.  (a)  Subject to Subsections (b) and (c), labor to repair, remodel, maintain, or restore tangible personal property is exempted from the taxes imposed by this chapter if:
(1)  the repair, remodeling, maintenance, or restoration is required by statute, ordinance, order, rule, or regulation of any commission, agency, court, or political, governmental, or quasi-governmental entity in order to protect the environment or to conserve energy; and
(2)  the charge for the labor is itemized separately from the charge for materials furnished.
(b)  The exemption provided by Subsection (a) does not apply to the charge for materials furnished by the service provider to the purchaser as part of the service.
(c)  Sixty-five percent of a lump-sum charge for labor and materials to repair, remodel, maintain, or restore tangible personal property is exempted from the taxes imposed by this chapter if:
(1)  the repair, remodeling, maintenance, or restoration is required under the circumstances described by Subsection (a)(1); and
(2)  the labor and materials are purchased for a health care facility, as defined by Section 108.002, Health and Safety Code, or for an oncology center.
Added by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 7, Sec. 16, eff. Oct. 2, 1984.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 638 (S.B. 1525), Sec. 4, eff. June 10, 2019.