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Daily Tax Report: State

Texas Comptroller Decides Sales and Use Taxpayer Didn’t Provide Exempt Improvements to Manufacturing Unit

April 8, 2020, 5:00 AM

The Texas Comptroller of Public Accounts Feb. 12 decided to adopt the Administrative Law Judge’s (ALJ) recommendation to adopt a sales and use tax assessment against Taxpayer. The Tax Division (staff) audited Taxpayer, an electrical contractor, and assessed tax, penalty, and interest. Taxpayer sought review, arguing that it provided exempt repairs to manufacturing equipment to increase capacity. The ALJ found: 1) they had no authority to order settlement; 2) Taxpayer didn’t provide clear and convincing evidence that it repaired exempt manufacturing equipment; 3) a retailer can only accept a blanket exemption certificate from purchasers who only purchase exempt items; 4)...

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