TX - Sales Tax-Exempt Days

From TaxAlmanac

The state of Texas allows two exempt days from sales tax for certain organizations. See TAX CODE, SUBTITLE E. SALES, EXCISE, AND USE TAXES, CHAPTER 151. LIMITED SALES, EXCISE, AND USE TAX

SUBCHAPTER A.[[1]] GENERAL PROVISIONS

Organizations that are exempt from sales tax are define under Section 151.310(a) (1) and (2).

(a)(1) an organization created for religious,educational, or charitable purposes if no part of the net earnings of the organization benefits a private shareholder or individual and the items purchased, leased, or rented are related to the purpose of the organization;

(a)(2) an organization qualifying for an exemption from federal income taxes under Internal Revenue Code of the item sold, leased, rented, stored, used, or consumed relates to the purpose of the exempted organization and the item is not used for the personal benefit of a private stockholder or individual;

Qualified organization are define as the following by Internal Revenue code 501(c)

 (3) Corporations, and any community chest, fund, or foundation,
     organized and operated exclusively for religious, charitable,
     scientific, testing for public safety, literary, or educational
     purposes, or to foster national or international amateur sports
     competition (but only if no part of its activities involve the
     provision of athletic facilities or equipment), or for the
     prevention of cruelty to children or animals, no part of the net
     earnings of which inures to the benefit of any private
     shareholder or individual, no substantial part of the activities
     of which is carrying on propaganda, or otherwise attempting, to
     influence legislation (except as otherwise provided in subsection
     (h)), and which does not participate in, or intervene in
     (including the publishing or distributing of statements), any
     political campaign on behalf of (or in opposition to) any
     candidate for public office.

    (4) (A) Civic leagues or organizations not organized for profit
     but operated exclusively for the promotion of social welfare, or
     local associations of employees, the membership of which is
     limited to the employees of a designated person or persons in a
     particular municipality, and the net earnings of which are
     devoted exclusively to charitable, educational, or recreational
     purposes.
       (B) Subparagraph (A) shall not apply to an entity unless no
     part of the net earnings of such entity inures to the benefit of
     any private shareholder or individual.

    (8) Fraternal beneficiary societies, orders, or associations -
         (A) operating under the lodge system or for the exclusive
       benefit of the members of a fraternity itself operating under
       the lodge system, and
         (B) providing for the payment of life, sick, accident, or
       other benefits to the members of such society, order, or
       association or their dependents.

    (10) Domestic fraternal societies, orders, or associations,
     operating under the lodge system -
         (A) the net earnings of which are devoted exclusively to
       religious, charitable, scientific, literary, educational, and
       fraternal purposes, and
         (B) which do not provide for the payment of life, sick,
       accident, or other benefits.

    (19) A post or organization of past or present members of the
     Armed Forces of the United States, or an auxiliary unit or
     society of, or a trust or foundation for, any such post or
     organization -
         (A) organized in the United States or any of its possessions,
         (B) at least 75 percent of the members of which are past or
       present members of the Armed Forces of the United States and
       substantially all of the other members of which are individuals
       who are cadets or are spouses, widows, or widowers of past or
       present members of the Armed Forces of the United States or of
       cadets, and
         (C) no part of the net earnings of which inures to the
       benefit of any private shareholder or individual.

Each bona fide chapter of the organization, may hold two tax-free sales or auctions under this subsection during a calendar year and each tax-free sale or auction may continue for one day only. The sale of a taxable item the sales price of which is $5,000 or less by a qualified organization or chapter of the organization at a tax-free sale or auction is exempted from the sales tax imposed by Subchapter C of this chapter, except that a taxable item manufactured by or donated to the qualified organization or chapter of the organization may be sold tax free regardless of the sales price to any purchaser other than the donor. The storage, use, or consumption of a taxable item that is acquired from a qualified organization or chapter of the organization at a tax-free sale or auction and that is exempted under this subsection from the taxes imposed by Subchapter C of this chapter is exempted from the use tax imposed by Subchapter D of this chapter until the item is resold or subsequently transferred.