Until the laws for collecting sales tax changed a few of years ago, it was assumed that the “Sales Tax Exemption” letter from the State of Texas meant that you were exempt from paying Sales Tax AND FROM COLLECTING SALES TAX. NOT TRUE! The law is very vague but the bottom line is that animal rescue/shelters/sanctuaries and the like, must collect sales tax on their adoption fees.
The assumption had been that as a 501C3 that your organization wasn’t liable for any tax. The 501C3 is a FEDERAL program about income. SALES TAX is levied by the state. So an adoption, no matter how you phrase it, that State of Texas calls it a sale and is to be taxed by the collection of sales tax. The Sales Tax must then be turned over to the State of Texas.
Great Dane Rescue of North Texas has been beating this drum for years. The attached link is to posts made by GDRNT to warn other rescue groups of the need for compliance. Read it and be warned.