Tex. Codes » Tax Code · TITLE 2. STATE TAXATION · SUBTITLE E. SALES, EXCISE, AND USE TAXES · CHAPTER 151. LIMITED SALES, EXCISE, AND USE TAX
Texas Codes

Tex. Tax Code § 151.054 (2026)

Gross Receipts Presumed Subject To Tax

✓ current as of May 2026
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Sec. 151.054. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. (a) Except as provided by Subsection (d) of this section, all gross receipts of a seller are presumed to have been subject to the sales tax unless a properly completed resale or exemption certificate is accepted by the seller.

(b) A sale is exempt if the seller receives in good faith from a purchaser, who is in the business of selling, leasing, or renting taxable items, a resale certificate stating that the tangible personal property or service is acquired for the purpose of selling, leasing, or renting it in the regular course of business or for the purpose of transferring it as an integral part of a taxable service performed in the regular course of business.

(c) A sale is exempt if the seller receives in good faith from a purchaser an exemption certificate stating qualifications for an exemption provided in Subchapter H of this chapter.

(d) A sale of liquor, wine, or malt beverages by the holder of a brewer's license, wholesaler's permit, general class B wholesaler's permit, local distributor's permit, or a general or branch distributor's license issued under the Alcoholic Beverage Code to the holder of a retail license or permit issued under the Alcoholic Beverage Code is presumed to be a sale for resale. In a sale to which this section applies, the seller is not required to receive a resale certificate from the purchaser.

(e) Properly completed resale or exemption certificates should be in the possession of the seller at the time the nontaxable transaction occurs. If the seller is not in possession of these certificates within 90 days from the date written notice requiring possession of them is given to the seller by the comptroller or a later date agreed to by the comptroller and the seller, deductions claimed by the seller that require delivery of the certificates shall be disallowed. A deduction may not be granted on the basis of certificates delivered to the comptroller after the 90-day period or, if applicable, the date agreed to by the comptroller and the seller.

(f) Before allowing a deduction, the comptroller may verify the reason or basis for exemption claimed in a resale or exemption certificate delivered to the comptroller during the period provided by Subsection (e).

Acts 1981, 67th Leg., p. 1550, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 15, Sec. 2, eff. Oct. 2, 1984; Acts 1985, 69th Leg., ch. 206, Sec. 6, eff. Oct. 1, 1985; Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 16.

Amended by:

Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 397, eff. September 1, 2021.

Acts 2021, 87th Leg., R.S., Ch. 364 (S.B. 296), Sec. 1, eff. June 7, 2021.

Notes of Decisions
Cited in 10 cases, 2002–2015 · leading case: Site Work Grp., Inc. v. Chem. Lime Ltd., 171 S.W.3d 512 (Tex. App. 2005).
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Site Work Grp., Inc. v. Chem. Lime Ltd., 171 S.W.3d 512 (Tex. App. 2005). · cites it 4× “See Tex. Tax Code Ann. § 151.054 (a), (e). Appellants’ burden was not to prove the tax-exempt status of the Project, but was to present summary-judgment evidence to bring a fact issue relating to whether or not they provided Chemical Lime with a tax-exemption certificate.”
Sundown Farms, Inc. & Thad Sherman Burnett v. State of Texas City of Sour Lake, Texas & Cnty. of Unspecified, Texas (Tex. App. 2002). “See Tex. Tax Code Ann. § 151.054 . Appellants do not cite statutes or rules providing that their work was exempt.”
Alpine Indus., Inc. v. Carole Keeton Strayhorn, Comptroller of Pub. Accounts of the State of Texas & Greg Abbott, Attorney Gen. for the State of Texas (Tex. App. 2004). “See Tex. Tax Code Ann. § 151.054 (a) (West 2002) (except for certain alcoholic beverage sales, "all gross receipts of a seller are presumed to have been subject to the sales tax unless a properly completed resale or exemption certificate is accepted by the seller"); id.”
E. De La Garza, Inc. v. Carole Keeton Rylander, as Comptroller of Pub. Accounts & Greg Abbott, as Attorney Gen. for the State of Texas (Tex. App. 2005). “See Tex. Tax Code Ann. § 151.054 (a)-(b) (West 2002).”
E. De La Garza, Inc. v. Carole Keeton Rylander, as Comptroller of Pub. Accounts & Greg Abbott, as Attorney Gen. for the State of Texas (Tex. App. 2005). “See Tex. Tax Code Ann. § 151.054 (a)-(b) (West 2002).”
Stuart Thomas Gerstacker v. Kimberly Ann Gerstacker (Tex. App. 2011). “See Tex. Tax Code Ann. § 151.054 (b) (West 2008) (“A sale is exempt if the seller received in good faith from a purchaser .”
Austin Eng'g Co., Inc. v. Susan Combs, Comptroller of Pub. Accounts of the State of Texas, & Greg Abbott, Attorney Gen. of the State of Texas (Tex. App. 2011). “See Tex. Tax Code Ann. § 151.054 (b) (West 2008) ("A sale is exempt if the seller received in good faith from a purchaser .”
Susan Combs, Successor to Carole Keeton Strayhorn, Comptroller of Pub. Accounts of the State of Texas, & Greg Abbott, Attorney Gen. of the State of Texas v. Health Care Serv. Corp., a Mut. Legal Reserve Co., Successor to Blue Cross & Blue Shield of Texas, Inc. (Tex. App. 2011). “" According to the Comptroller, Blue Cross is neither because it does not sell "taxable items," see Tex. Tax Code Ann. § 151.008 (a) (West 2008) (definition of "seller"), and because it is not "in the business of selling, leasing, or renting taxable items" and could not issue a…”
Susan Combs, Successor to Carole Keeton Strayhorn, Comptroller of Pub. Accounts of the State of Texas, & Greg Abbott, Attorney Gen. of the State of Texas v. Health Care Serv. Corp., a Mut. Legal Reserve Co., Successor to Blue Cross & Blue Shield of Texas, Inc. (Tex. App. 2011). “” According to the Comptroller, Blue Cross is neither because it does not sell “taxable items,” see Tex. Tax Code Ann. § 151.008 (a) (West 2008) (definition of “seller”), and because it is not “in the business of selling, leasing, or renting taxable items” and could not issue a…”
Volkswagen Grp. of Am., Inc. & Audi of Am., Inc. v. John Walker III, in His Off. Capacity as Chairman of the Texas Dep't of Motor Vehs. Bd. The Honorable Michael J. O'Malley, the Honorable Penny A. Wilkov, in Their Off. Capacities as Admin. Law Judges for the State Off. (Tex. App. 2015). “The 60-day letter expressly stated that: "Any certificates presented after the expiration of the sixty days will not be accepted and the sales will be treated as taxable as required by Tex. Tax Code Ann. SECTION 151.054 and l5I.”
— Tex. Tax Code § 151.054(a) — 1 case
Site Work Grp., Inc. v. Chem. Lime Ltd., 171 S.W.3d 512 (Tex. App. 2005). “See Tex. Tax Code Ann. § 151.054 (a), (e). Appellants’ burden was not to prove the tax-exempt status of the Project, but was to present summary-judgment evidence to bring a fact issue relating to whether or not they provided Chemical Lime with a tax-exemption certificate.”
— Tex. Tax Code § 151.054(e) — 1 case
Site Work Grp., Inc. v. Chem. Lime Ltd., 171 S.W.3d 512 (Tex. App. 2005). “See Tex. Tax Code Ann. § 151.054 (a), (e). Appellants’ burden was not to prove the tax-exempt status of the Project, but was to present summary-judgment evidence to bring a fact issue relating to whether or not they provided Chemical Lime with a tax-exemption certificate.”
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