TEXAS CERTIFICATE OF EXEMPTION
Purchaser’s Name:
Street Address:
City, State, Zip Code:
I claim an exemption from payment of sales and use taxes for the purchase of items described below or on the attached order or invoice: See below.
Description of items to be purchased:
Installation and purchase of manufacturing or processing equipment used to process tangible personal property. Also, for periods beginning January 1, 1995, services performed on this equipment are exempt. Additionally, various lubricants, chemicals and chemical compounds used to maintenance this equipment are also exempt.
I claim this exemption for the following reason:
Section 151.318(a)(2) of the Tax Code states that tangible personal property directly used or consumed in or during the actual manufacturing, processing, or fabrication of tangible personal property for ultimate sale is exempt from sales tax if the use or consumption of the property is necessary or essential to the manufacturing, processing, or fabrication operation and directly makes or causes a chemical or physical change to the product being manufactured, processed, or fabricated for ultimate sale. Section 151.3111(a) of the Tax Code states that a service that is performed on tangible personal property that, if sold, leased, or rented, at the time of the performance of the service, would be exempted because of the nature of its use is exempted from sales tax. Also, various lubricants, chemicals, and chemical compounds are claimed as exempt under Section 151.318(a)(6) as they are necessary and essential to prevent the decline, failure, lapse, or deterioration of the equipment discussed above.
I understand that I will be liable for payment of sales tax which may become due for failure to comply with the provisions of the Tax Code: Limited Sales, Excise, and Use Tax Act, Municipal Sales and Use Tax Act, Sales and Use Taxes for Special Purpose Taxing Authorities, County Sales and Use Tax Act, County Health Service Sales and Use Tax and the Texas Health and Safety Code: Special Provisions Relating to Hospital Districts, Emergency Services Districts, and Emergency Services Districts in counties with a population of 125,000 or less. Liability for the tax will be determined by the price paid for the taxable items purchased or the fair market rental value for the period of time used.
I understand that it is a criminal offense to give an exemption certificate to the seller for taxable items which I know, at the time of purchase, will be used in a manner other than that expressed in this certificate.
Seller:
Street Address:
City, State, Zip Code:
Purchaser’s
Signature:______Date:______
Title:______Phone:______
This certificate does not require a number to be valid. Sales and use tax exemption numbers or tax exempt numbers do not exist. This certificate should be furnished to the supplier. Do not send the completed certificate to the Comptroller of Public Accounts.