Because a contractor purchases a security service to monitor a job site during the construction of a university’s student housing, the purchase is considered exempt. Although the exempt status a university carries does not pass through to the contractor, Texas does have an exemption for taxable services used in the performance of a contract for exempt organizations. The exemption is however, limited to those services needed in order to improve reality. The contractor must expressly require the security service to be provided. (Letter, Texas Comptroller of Public Accounts, No. 200207286L, July 22, 2002)