Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter O - STATE AND LOCAL SALES AND USE TAXES › Section 3.316 - Occasional Sales; Transfers Without Change in Ownership; Sales by Senior Citizens' Organizations; Sales by University and College Student Organizations; and Sales by Nonprofit Animal Shelters

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Sales exempt. A taxable item that is sold or purchased by way of an occasional
				  sale is exempt from sales and use taxes, except as provided by subsection (i)
				  of this section.
(b) Occasional
				  sales by persons not in the business of selling, leasing, or renting.
(1) One or two sales of taxable items, other
				  than an amusement service, during any 12-month period by a person who does not
				  hold himself out as engaged (or who does not habitually engage) in the business
				  of selling taxable items are occasional sales.
(2) The third sale of a taxable item in a
				  12-month period by a person not previously in the business of selling, leasing,
				  or renting taxable items causes that person to become a retailer. Tax must be
				  collected and reported on the third sale and all subsequent sales unless the
				  sale qualifies for exemption under paragraph (4) of this subsection or
				  subsection (d) or (e) of this section. If three or more sales are made in a
				  12-month period, then the person must obtain a permit. See §
											3.286
				  of this title (relating to Seller's and Purchaser's Responsibilities, including
				  Nexus, Permits, Returns and Reporting Periods, and Collection and Exemption
				  Rules). Example: A lump-sum contractor sells a backhoe in October, a typewriter
				  in December and a crane in February. The contractor has not sold, leased or
				  rented any construction equipment prior to the sale of the backhoe; therefore,
				  the contractor can sell the backhoe and typewriter tax free as occasional
				  sales. The sale of the crane is the third sale within 12 months from the sale
				  of the back-hoe. The sale of the crane is not an occasional sale. The
				  contractor must obtain a permit, collect tax on the sale of the crane and,
				  until an intervening 12 months have passed between sales, all subsequent sales
				  of taxable items.
(3) The sale of
				  not more than ten admissions for amusement services during a 12-month period by
				  a person who does not hold himself out as engaged (or who does not habitually
				  engage) in the provision of amusement services are occasional sales.
(4) The sale of tangible personal property by
				  an individual is an occasional sale if:
(A)
				  the property was originally purchased by the individual or a member of the
				  individual's family for either of their personal use;
(B) the individual does not hold a sales tax
				  permit and is not required to hold a sales tax permit;
(C) the sale is not made through the use of
				  an auctioneer, broker, or factor, other than an online auction; and
(D) the total receipts from such sales do not
				  exceed $3,000 in a calendar year. If the total receipts from the individual's
				  sales of such tangible personal property exceed $3,000 in a calendar year, the
				  individual must obtain a sales tax permit and collect tax on all sales of
				  taxable items in this state, beginning with the first sale which causes the
				  total receipts to exceed $3,000.
(5) The exemption provided under subsection
				  (b) of this section does not apply to a rental or lease of a taxable
				  item.