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 § 151.309 (2026)

Governmental Entities

✓ current as of May 2026
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Sec. 151.309. GOVERNMENTAL ENTITIES. A taxable item sold, leased, or rented to, or stored, used, or consumed by, any of the following governmental entities is exempted from the taxes imposed by this chapter:

(1) the United States;

(2) an unincorporated instrumentality of the United States;

(3) a corporation that is an agency or instrumentality of the United States and is wholly owned by the United States or by another corporation wholly owned by the United States;

(4) this state;

(5) a county, city, special district, or other political subdivision of this state; or

(6) a state, or a governmental unit of a state that borders this state, but only to the extent that the other state or governmental unit exempts or does not impose a tax on similar sales of items to this state or a political subdivision of this state.

Acts 1981, 67th Leg., p. 1560, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1993, 73rd Leg., ch. 719, Sec. 1, eff. July 1, 1993.

Notes of Decisions
Cited in 4 cases (2 in the last 5 years), 2011–2025 · leading case: The Geo Grp., Inc. & Geo Corr. & Det., LLC v. Glenn Hegar, Comptroller of Pub. Accounts of the State of Texas, & Ken Paxton, Attorney Gen. of the State of Texas (Tex. 2025).
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The Geo Grp., Inc. & Geo Corr. & Det., LLC v. Glenn Hegar, Comptroller of Pub. Accounts of the State of Texas, & Ken Paxton, Attorney Gen. of the State of Texas (Tex. 2025). · cites it 5× “See TEX. TAX CODE § 151.309; 34 TEX. ADMIN. CODE § 3.”
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 Servs. Corp., a Mut. Legal Reserve Co., Successor to Blue Cross & Blue Shield of Texas, Inc. (Tex. App. 2011). · cites it 2× “See Tex. Tax Code Ann. §§ 151.309 (1) (exemption for sale to federal government), .”
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 Servs. Corp., a Mut. Legal Reserve Co., Successor to Blue Cross & Blue Shield of Texas, Inc. (Tex. App. 2011). · cites it 2× “See Tex. Tax Code Ann. §§ 151.309 (1) (exemption for taxable item sold to the federal government), .”
the GEO Grp. Inc. & GEO Corr. & Det., LLC v. Glenn Hegar, Comptroller of Pub. Accounts of the State of Texas, & Ken Paxton, Attorney Gen. of the State of Texas (Tex. App. 2023). “Laws 61 , 75 (current version at TEX. TAX CODE § 151.309) (“There are exempted from the computation of the amount of the taxes imposed by this Chapter, the receipts from the sale, lease or rental of any taxable items to, or the storage, use or other consumption of taxable items…”
— Tex. Tax Code § 151.309(1) — 1 case
The Geo Grp., Inc. & Geo Corr. & Det., LLC v. Glenn Hegar, Comptroller of Pub. Accounts of the State of Texas, & Ken Paxton, Attorney Gen. of the State of Texas (Tex. 2025). “See TEX. TAX CODE § 151.309; 34 TEX. ADMIN. CODE § 3.”
— Tex. Tax Code § 151.309(2) — 1 case
The Geo Grp., Inc. & Geo Corr. & Det., LLC v. Glenn Hegar, Comptroller of Pub. Accounts of the State of Texas, & Ken Paxton, Attorney Gen. of the State of Texas (Tex. 2025). “See TEX. TAX CODE § 151.309; 34 TEX. ADMIN. CODE § 3.”
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