The Texas Court of Appeals held that a taxpayer’s refund claim sufficiently put the Comptroller on notice that the taxpayer claimed a manufacturing exemption. An electricity manufacturer filed a refund claim for sales taxes paid on various types of meters used in its business. The Comptroller denied the claim, and the taxpayer sought an administrative

Immediately before last Friday’s deadline for the filing of unrestricted bills, Texas lawmakers introduced a digital advertising tax bill and a bill that would expand sales tax to a wide array of services.

H.B. 4467, filed on March 12 by Rep. Trey Martinez Fischer (D-TX-116) would impose a tax on gross revenue from digital

The Texas Comptroller of Public Accounts recently released guidance explaining the application of Texas sales and use tax to online sales. In particular, online buyers must pay sales and use tax on taxable items delivered or brought into Texas. Remote sellers required to collect tax can do so based on either the shipping destination rate

On September 24, 2020, the Texas Court of Appeals upheld the Texas insurance premium tax on insurance policies for bales of cotton temporarily stored at Texas warehouses.  The court rejected the taxpayer’s arguments that: (1) the tax violated the Commerce Clause and the Import-Export Clause of the United States Constitution; and (2) the insurance at

The Texas Comptroller of Public Accounts issued a private letter ruling concluding that several services provided to optometrists and ophthalmologists were subject to sales tax as data processing.  Specifically, the Comptroller determined that the taxpayer’s web-based software system, which doctors use to manage patient relationships, schedule appointments, refill prescriptions, and communicate about treatment, is a

The Texas Court of Appeals held that the trial court did not have jurisdiction over a taxpayer’s sales and use tax refund claim because the taxpayer failed to properly state the grounds for the refund claim.  The Texas Tax Code requires that a refund claim: (1) be written, (2) “state fully and in detail each

In this episode we discuss two recent developments, including an Oregon decision concerning sales tax on vehicles (EAN Holdings, LLC v Oregon Department of Revenue) and a Texas letter ruling dealing with software as a service and data processing (Texas Private Letter Ruling No. PLR 20180724152951).

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The Texas Comptroller adopted a proposed decision issued by an Administrative Law Judge (ALJ) finding that a company owed sales tax on its sales of online gaming services to Texas residents. The company, who had at least one employee in Texas, developed and maintained online interactive social gaming experiences for its registered users, including those

Consistent with a prior decision of a sister appellate court, Texas’ Texarkana Court of Appeals held that the sale of telecommunication products and signals constitutes the sale of a service for purposes of Texas’ franchise tax. The taxpayer sold electrical, light and radio signals to customers through copper wire, fiber-optic cable and leased telephone lines.

A taxpayer’s spent carbon reactivation process did not qualify as “manufacturing” for the purposes of Texas’ manufacturing sales tax exemption, according to recently released guidance from the Texas Comptroller of Public Accounts. In a private letter ruling, the Comptroller holds that a taxpayer who operates a carbon reactivation plant is ineligible for the exemption because