Texas Tax Code 151.307 – Exemptions Required by Prevailing Law
(a) Tangible personal property or service that this state is prohibited from taxing by the law of the United States, the United States Constitution, or the Constitution of Texas is exempted from the taxes imposed by this chapter.
(b) When an exemption is claimed because tangible personal property is exported beyond the territorial limits of the United States, proof of export may be shown only by:
(1) a bill of lading issued by a licensed and certificated carrier of persons or property showing the seller as consignor, the buyer as consignee, and a delivery point outside the territorial limits of the United States;
(2) documentation:
(A) provided by a United States Customs Broker licensed by the comptroller under § 151.157;
(B) certifying that delivery was made to a point outside the territorial limits of the United States;
(C) that includes, in addition to any other information required by the comptroller, a statement signed by the person claiming the exemption that states that “Providing false information to a customs broker is a Class B misdemeanor.”; and
(D) to which a stamp issued under § 151.158 is affixed in the manner required by that section or § 151.157;
(3) import documents from the country of destination showing that the property was imported into a country other than the United States;
(4) an original airway, ocean, or railroad bill of lading and a forwarder’s receipt if an air, ocean, or rail freight forwarder takes possession of the property; or
(5) any other manner provided by the comptroller for an enterprise authorized to make tax-free purchases under § 151.156.
Attorney's Note
Under the Texas Codes, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| Class B misdemeanor | up to 180 days | up to $2,000 |
Terms Used In Texas Tax Code 151.307
- Comptroller: means the Comptroller of Public Accounts of the State of Texas. See Texas Tax Code 1.04
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Personal property: All property that is not real property.
- Personal property: means property that is not real property. See Texas Tax Code 1.04
- Property: means real and personal property. See Texas Government Code 311.005
- Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005
- Tangible personal property: means personal property that can be seen, weighed, measured, felt, or otherwise perceived by the senses, but does not include a document or other perceptible object that constitutes evidence of a valuable interest, claim, or right and has negligible or no intrinsic value. See Texas Tax Code 1.04
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
(c) Documentation, including the stamp affixed to the documentation, that is provided by a customs broker licensed by the comptroller under § 151.157 is presumed valid in the absence of clear and convincing evidence that the tangible personal property covered by the documentation was not exported outside the territorial limits of the United States.
(d) A retailer who receives documentation under Subsection (b)(2) relating to the purchase of tangible personal property exported beyond the limits of the United States may not refund the tax paid under this chapter on that purchase before:
(1) the 24th hour after the hour stated as the time of export on the documentation, if the retailer is located in a county that borders the United Mexican States; or
(2) the seventh day after the day stated as the date of export on the documentation, if the retailer is located in a county that does not border the United Mexican States.
(e) A retailer who makes a refund before the time prescribed by Subsection (d) or makes a refund that is undocumented or improperly documented is liable for the amount of the tax refunded with interest.
(f) In this section:
(1) “Air forwarder” means a licensed International Air Transportation Association freight forwarder.
(2) “Ocean forwarder” means a licensed Federal Maritime Commission freight forwarder.