Form AP-209 at a glance
What it is: Texas Application for Exemption - Religious Organizations is the application nonprofit religious organizations should use to request exemption from Texas sales tax, hotel occupancy tax and franchise tax, if applicable.
Where and when to file: You can submit your completed application along with required documentation by mail, fax, or email.
To receive a state tax exemption as a religious organization, a nonprofit religious organization must be an organized group of people regularly meeting at a particular location with an established congregation for the primary purpose of holding, conducting and sponsoring religious worship services according to the rites of their sect. Exemption from federal tax is not required to qualify for exemption from state tax as a religious organization.
A filled-in Form AP-209 example: a church applies as a member of a denomination
How to fill out Form AP-209, box by box
Make only one selection as the organization's primary purpose
Make only one selection as the organization's primary purpose.
Religious worship services, Ministry, Youth group, Missionary, Bible study, Evangelistic association.
Evangelistic associations do not qualify for exemption as religious organizations. Organizations that simply support and encourage religion as an incidental purpose, or that further religious work or teach their membership religious understanding (such as Bible study groups, prayer groups and revivals) do not qualify for exempt status under this category.
Date, time and frequency of worship services
Enter the Date of first worship service.
Enter the Time and frequency of worship services.
Physical address (no P.O. Box) where worship services are conducted
Enter the Physical address (no P.O. Box) where worship services are conducted.
Contact information of the person submitting this application
Enter the Contact information of the person submitting this application: Name and Email address.
Also enter the Organization name and the Daytime phone (Area code and number), and the Extension if the phone has one.
Then enter the Address, City, State and ZIP code.
Mailing address, if an email address is not provided
If an email address is not provided, indicate where the response should be mailed: organization's mailing address or mailing address of the submitter.
Option A (Member of a common denomination or convention of churches)
If your organization is a church that is a member of a common denomination or convention of churches, and the parent organization either has a 501(c)(3) federal group exemption, or has previously obtained a religious exemption in Texas for the churches under its jurisdiction, your church can obtain exemption based on its affiliation with the parent organization.
Attach a letter from the parent organization stating that your church is a recognized subordinate, or provide the website of the parent organization where your church's affiliation can be verified.
Enter the Name of parent organization and the Parent organization website.
Option B (Independent or nondenominational church)
The following must be included with your application. Information may be in the form of a bulletin, brochure, written statement or website:
Your organization's statement of faith.
The regular order of what takes place during worship services (for example, invocation, sermon, hymns, closing prayer).
Evidence that services are open to the public and how they are advertised to the public.
A description of the facility where the worship services are regularly conducted (pictures are accepted but not required and will not be returned).
Special note to unincorporated entities: Include your organization's governing documents, such as the bylaws or constitution.
Special note to non-Texas organizations: Include a file-stamped copy of your organization's formation documents AND a current Certificate of Existence from the Secretary of State or equivalent officer in your home state.
More rules for Form AP-209
Type or print.
Do NOT write in shaded areas.
The Comptroller processes applications in the order they are received.
If your church has its own 501(c)(3) federal exemption, provide a copy of the IRS determination letter along with the information in option A or B so that we may update our records.
Applications received without supporting documentation will be returned.
The exemption for religious organizations is provided for in Sections 151.310, 156.102 and 171.058 of the Texas Tax Code.
Common questions about Form AP-209
Where do I file it?
Mail: Texas Comptroller of Public Accounts Exempt Organizations Section P.O. Box 13528 Austin, Texas 78711. FAX: (512) 475-5862 Email: exempt.orgs@cpa.texas.gov.
Sources
[1] Form AP-209 (Rev.7-26/14), Texas Application for Exemption - Religious Organizations, Texas Comptroller of Public Accounts (the Official source link on this page).