Tag Archives: texas use tax

Business Buyer Owes Tax Not Assessed Until After Purchase, Appeals Court Says

The Texas Third Court of Appeals held today in Agri-Plex Heating and Cooling, LLC v. Hegar that the purchaser of a business may be liable for Texas sales and use tax assessed against the business for the time before the purchase, even if the Texas Comptroller did not audit the business and assess the tax […]


Southwest Royalties: No New Manufacturing Exemption for Oil & Gas, Texas Supreme Court Says

Today, the Texas Supreme Court released its long-awaited opinion in Southwest Royalties, Inc. v. Hegar.  It held that oil and gas above-ground and downhole production equipment doesn’t qualify for the manufacturing exemption from Texas sales and use tax, affirming the ruling of both the Third Court of Appeals and the trial court.  This case has […]


No Resale Exemption for Health Club Equipment, Appeals Court Finds

The Texas Third Court of Appeals issued its opinion today in Fitness International, LLC v. Hegar.  It held that certain equipment, such as cardio machines and weight racks, that a health club purchased for its customers’ use, was not exempt from Texas sales and use tax under the sale for resale exemption.  The court based […]


Texas Legislative Recap for State and Local Taxes 2015

While the 2015 Texas Legislature gave taxpayers a significant franchise tax (margin tax) rate cut and repealed some smaller taxes (some of which had not been collected in years), it otherwise left much of the Texas tax code otherwise unchanged.  In this Texas legislative recap, we’ll tell you about the changes the Texas Legislature made […]


Third Court of Appeals Defers to Comptroller on Manufacturing Exemption for Oil & Gas

As we reported earlier, the Third Court of Appeals ruled in Southwest Royalties, Inc. v. Combs that oil and gas above-ground and downhole production equipment doesn’t qualify for the Texas sales tax manufacturing exemption.  This case has drawn a fair amount of attention due to the large potential financial impact on the State of Texas […]


Court of Appeals Denies Texas Sales Tax Exemption for Oil and Gas Equipment

The Texas Third Court of Appeals just issued its opinion in Southwest Royalties, Inc. v. Combs, No. 03-12-00511-CV.  The opinion affirms a district court opinion denying oil and gas operators the Texas sales tax manufacturing exemption on their purchases of certain above-ground and downhole production equipment.  The opinion also provides some useful discussion of the circumstances […]


Third Court of Appeals Expands Aircraft Sales Tax Exemption

The Third Court of Appeals’ opinion in Cirrus Exploration Company v. Combs expands the number of businesses who may purchase aircraft without paying Texas sales and use tax.  In doing so, the Third Court of Appeals once again rejected a long-standing Texas Comptroller policy that imposed additional requirements not found in the Texas Tax Code […]


Court of Appeals Hears Argument Regarding Texas Sales Tax Exemption for Oil and Gas Equipment

The Texas Third Court of Appeals heard oral argument today in Southwest Royalties, Inc. v. Combs, No. 03-12-00511-CV.  The case addresses whether oil and gas operators may claim the Texas sales and use tax manufacturing exemption on their purchases of certain above-ground and downhole production equipment.  An ultimate win for the taxpayer here could mean […]


Texas Comptroller Hearing Decision Highlights Importance of Terminating Business Entities

A new Texas Comptroller hearing decision spotlights the importance of terminating business entities after they conclude their business.  Doing so helps limit the entity’s exposure to potential tax assessments.  This is because it, in many cases, may effective reduce the amount of time the Comptroller has to make an assessment against the entity.  I’ll discuss […]


Texas Legislature Considers Tax Increases in Second Special Session

Members of the Texas Legislature have filed two tax bills for consideration in the current second special legislative session.  Both are proposals for how to increase transportation funding in response to Governor Perry’s charge to the Legislature to consider “legislation relating to the funding of transportation infrastructure projects.”  Exactly how much consideration the Legislature will […]


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