9608L1434B07
COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS  78774

August 15, 1996

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Dear ******:

This is in response to our telephone conversation August 14, 1996, concerning a 
sales tax permit and/or a resale certificate for wholesalers of natural gas 
that is resold during pipeline transportation.

We do not require persons who make only exempt sales of natural gas to hold a 
sales tax permit solely to report those exempt sales.  However, these sellers 
must issue a resale certificate to a supplier who asks for one.  A resale 
certificate for natural gas without a permit number may be accepted if the 
buyer claims all sales are for resale or are to exempt customers and the seller 
does not have actual knowledge that the claim is invalid.

Natural gas is subject to limited sales tax and properly executed resale or 
exemption certificates are the only proof that may be offered to show that a 
particular transaction qualifies for exemption.  Sellers of natural gas who 
demand a resale or exemption certificate before making a tax free sale are 
completely within their rights.

I understand your concern as expressed during our telephone conversation.  
Because of this, I am enclosing an application for a Texas sales and use tax 
permit.  If you feel more comfortable obtaining the permit and filing a yearly 
sales tax return with us, it is certainly acceptable to this agency, even 
though we do not require you to do so.

Please call me if you have any questions or need more information.  Our  toll 
free number is 1-800-531-5441, and my extension is 5-0330.  The direct line is 
512/475-0330.  You may also write to Tax Policy Division, Comptroller of Public 
Accounts.

Sincerely,
Bettie Peterson
Tax Policy Division

ACCESSION NUMBER: 9608300L	
SUPERSEDED: N
DOCUMENT TYPE: L
DATE: 08/15/1996
TAX TYPE: SALES