Baylor University
Tax & Compliance Accounting
Financial Services

Auctions/Sales Tax


The State of Texas requires that sales tax be charged to a purchaser on the selling price or winning bid of a taxable item sold at an auction, whether the auction is silent or verbal. However, a university student organization affiliated with the university may hold a one-day tax-free sale (including an auction) each month. The primary purpose of the sale must be to raise funds for the student organization. This exemption does not apply to items sold for more than $5,000 unless the item is manufactured by the organization, or the item is donated to the organization and is not sold to the donor.

For more information, please see Student Organizations under the Sales Tax category.