Tex.
Tax Code Section 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 (Definitions), 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 (Definitions), 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.
Source:
Section 151.321 — University and College Student Organizations, https://statutes.capitol.texas.gov/Docs/TX/htm/TX.151.htm#151.321
(accessed Mar. 23, 2024).