200809163L



September 15, 2008

Dear Taxpayer:

Texas Tax Code Section 151.317 exempts gas and electricity from Texas sales and 
use tax when sold for residential use. Representatives of the Texas Association 
of Campground Owners (TACO) have submitted sufficient information regarding 
predominant residential use of gas and electricity in campgrounds to verify 
qualifications for this exemption.

Based on this information, we will allow campground owners to submit exemption 
certificates claiming predominant residential use to utility companies without 
performing utility studies. 

Your firm may accept these exemption certificates in good faith without 
verification that a study has been performed. 

Please note that since the utilities are exempt as residential use, they are 
exempt from state, county, special purpose district and transit authority sales 
taxes. The utilities are subject to city sales tax (1 percent – 2 percent) in 
those cities that impose tax on residential use of natural gas and electricity.

A list of cities with tax on residential use of gas and electricity is 
available online: www.window.state.tx.us/taxinfo/utility/reflist.html. 

Please review Rule 3.295, Natural Gas and Electricity, found on our Web site at 
www.window.state.tx.us/taxinfo/sales/.  

Please let me know if I can be of additional help in this matter. You may call 
me toll free at 
(800) 531-5441, ext. 3-4987, or direct in Austin, Texas at (512) 475-4987. You 
may also submit questions by e-mail at tax.help@cpa.state.tx.us.  

Sincerely,


Bryant Lomax
Manager, Tax Policy Division




ACCESSION NUMBER: 200809163L
SUPERSEDED: N
DOCUMENT TYPE: L
DATE: 09/15/2008
TAX TYPE: SALES