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 3.285 - Resale Certificate; Sales for Resale

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Definitions. The following words and terms, when used in this section, shall
				  have the following meanings, unless the context clearly indicates otherwise.
(1) Equipment--Any apparatus, device, or
				  simple machine used to perform a service.
(2) Federal government--The government of the
				  United States of America and its unincorporated agencies and instrumentalities,
				  including all parts of the executive, legislative, and judicial branches and
				  all independent boards, commissions, and agencies of the United States
				  government unless otherwise designated in this section.
(3) Integral part--An essential element
				  without which the whole would not be complete. One taxable item is an integral
				  part of a second item if the taxable item is necessary, as opposed to
				  desirable, for the completion of the second item, and if the second item could
				  not be provided as a whole without the taxable item.
(4) Internet hosting service--The provision
				  to an unrelated user of access over the Internet to computer services using
				  property that is owned or leased and managed by the service provider and on
				  which the unrelated user may store or process the user's own data or use
				  software that is owned, licensed, or leased by the unrelated user or service
				  provider. The term does not include telecommunications services as defined in
				  §
											3.344
				  of this title (relating to Telecommunications Services).
(5) Machinery--All power-operated
				  machines.
(6) Mexico--Within the
				  geographical limits of the United Mexican States.
(7) Purchaser--A person who is in the
				  business of selling, leasing, or renting taxable items.
(8) Seller--Every retailer, wholesaler,
				  distributor, manufacturer, marketplace provider, or any other person who sells,
				  leases, rents, or transfers ownership of tangible personal property or performs
				  taxable services for consideration. Specific types of sellers, such as direct
				  sales organizations, pawnbrokers, marketplace providers, and auctioneers, are
				  further defined in §
											3.286
				  of this title (relating to Seller's and Purchaser's
				  Responsibilities).
(9) Taxable
				  item--Tangible personal property and taxable services. Except as otherwise
				  provided by Tax Code, Chapter 151, the sale or use of a taxable item in an
				  electronic form instead of on physical media does not alter the item's tax
				  status.
(10) Tax-free inventory--A
				  stock of tangible personal property purchased tax-free for resale, whether from
				  out-of-state or by issuing a properly completed resale certificate, by a
				  purchaser who, at the time of purchase:
(A)
				  holds a valid Texas sales and use tax permit;
(B) makes sales of taxable items in the
				  regular course of business; and
(C)
				  does not know whether the tangible personal property will be resold in the
				  normal course of business or used in the performance of a service.
(11) United States--Within the
				  geographical limits of the United States of America or within the territories
				  and possessions of the United States of America.