Tax Law

Recent Posts

Virtual Pets and the Reality of Taxes – Texas Comptroller Affirms Sales Tax Assessment on Online Gaming Company
Posted on 18 Sep 2019 by Eversheds Sutherland LLP

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... Read More

No Mixed Signals – Texas Appellate Court Finds Telecomm Signal Sales Are Not Tangible Personal Property
Posted on 10 Sep 2019 by Eversheds Sutherland LLP

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... Read More

Why a taxpayer’s carbon reactivation process is ineligible for Texas’ manufacturing sales tax exemption
Posted on 3 Jul 2019 by Eversheds Sutherland LLP

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... Read More

Texas Court of Appeals holds Hotel Consumables not Purchased for Resale
Posted on 25 Mar 2019 by Eversheds Sutherland LLP

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... Read More

Texas Comptroller: Sales of Fuel Oil to Foreign Ships in Texas Waters Are “Texas Sales” for Apportionment Purposes
Posted on 28 Feb 2019 by Eversheds Sutherland LLP

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... Read More

Wind Farm Battery System Not Eligible for Manufacturing Exemption in Texas
Posted on 14 Dec 2018 by Eversheds Sutherland LLP

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... Read More

Physical Presence Standard Still Applies for Texas Franchise Tax After Wayfair
Posted on 9 Nov 2018 by Eversheds Sutherland LLP

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... Read More

Texas Finds No Nexus in Texas for purposes of Apportioning Margin
Posted on 1 Oct 2018 by Eversheds Sutherland LLP

The Texas State Office of Administrative Hearings (“SOAH”) found that the receipts of a non-nexus member of a combined group (Company A) “should be deleted” from the computation of the group’s gross receipts for purposes of apportioning revenue to the... Read More