The Texas Court of Appeals held that a hotel owner was not entitled to a resale exemption for the hotel consumables it offered to its guests during their stay. Alamo National Building Management (“Alamo”) purchased items such as soap, lotion, cups and coffee, among other things, using a resale certificate. The items were not separately
Texas Comptroller: Sales of Fuel Oil to Foreign Ships in Texas Waters Are “Texas Sales” for Apportionment Purposes
Posted in Texas
The Texas Comptroller determined that a taxpayer was required to include in its sales factor numerator its receipts from sales of bunker fuel oil to foreign ships in Texas ports. The taxpayer argued that the sales were not from “business done” in Texas even though the oil was delivered to ships in Texas ports. The…
Wind Farm Battery System Not Eligible for Manufacturing Exemption in Texas
By Eric Tresh & Eversheds Sutherland SALT on
Posted in In the News, Texas
The Texas Comptroller ruled that the purchase of a battery system did not qualify for the manufacturing exemption from Texas sales and use taxes because it was used to store electricity, not manufacture it. The taxpayer operated a wind farm and began a project to participate in the Electric Reliability Council of Texas’ Fast-Responding Regulation…
Physical Presence Standard Still Applies for Texas Franchise Tax After Wayfair
By Justin Stone & Maria Todorova on
Posted in In the News, Texas
The Texas Comptroller of Public Accounts recently ruled that the physical presence nexus standard continues to apply for the Texas Franchise Tax, even after South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018). As a result, a California company whose only contacts with Texas were sales of digital products, software and e-commerce transaction processing and…