Texas Comptroller of Public Accounts    STAR System


August 23, 1982


Dear *************:

Thank you for your letter regarding your client's purchase of equipment
and furniture by silent bid from a federal agency. Federal agencies
and instrumentalities are not required to collect limited sales tax by
a provision of the Buck Act (4 U.S.C. Section 107(a)) which states that:

The provisions of Sections 105 and 106 of this title shall be not deemed
to authorize the levy or collection of any tax on or from the United
States or any instrumentality thereof, or the levy or collection of any
tax with respect to sale, purchase, storage, or use of tangible personal
property sold by the United States or any instrumentality thereof to any
authorized purchaser.

This federal law prohibits states from requiring federal instrumentalities
and agencies to collect the sales or use tax on sales of tangible personal
property sold on federal enclaves.

TEX. TAX CODE ANN. SEC. 151.307 provides an exemption from the taxes 
imposed by this chapter for tangible personal property or service that is
prohibited from taxation by the law of the United States, the United States
Constitution or the Constitution of Texas. This provision exempts tangible
personal property and services that are specifically exempted by federal
law or the United States Constitution. The provisions of 4 U.S.C. Section
107(a) do not exempt any tangible personal property but merely relieve
federal agencies and instrumentalities from the responsibility of collecting
the state sales and use taxes. The Texas Tax Code does not tax services.

Your client will be liable for the tax on the equipment and furniture as
provided under TEX. TAX CODE ANN. SECS. 151.101 and 151.102. Section 151.101
imposes a tax on the storage, use or consumption of tangible personal property
in Texas and Section 151.102 imposes the tax upon the person storing, using
or consuming a taxable item in Texas.

Please feel free to contact me if you have additional questions. You may
write me or call toll free 1-800-252-5555 from anywhere in Texas or call


Eddie C. Washington
Sales Tax Division

DATE: 08/23/1982