Electricity Used to Power a Cotton Gin Exempt in Texas

Wednesday, August 10th, 2016

 
 
Cotton gin.
Share
Link
Texas
Manufacturing

The Texas Comptroller ruled that a cotton gin operator could buy electricity exempt from tax.

A cotton gin separates cotton fibers from cottonseed. This is a step in the process to manufacture raw cotton into products such as fabric and cottonseed oil.

Texas exempts electricity used in manufacturing. A taxpayer that buys electricity through a single meter must show that the electricity is predominantly used for manufacturing. A taxpayer can use an industry-wide utility study to show this. Texas has already accepted such a study for electricity used in cotton gins. As a result, the cotton gin operator could buy electricity exempt from tax.

http://aixtcp.cpa.state.tx.us/opendocs/open32/201607900l.html


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

New York Adopts New Economic Nexus Rule

Wednesday, January 23rd, 2019 -Effective January 2019, a retailer located outside of New York is required to collect use tax if, during the p...

New Commercial Farmer Certification Process in Louisiana

Monday, January 21st, 2019 -Effective January, 15, 2019, the Louisiana Department of Revenue has a new certification process for commercia...

Service Repairs to Petroleum Storage Tanks Exempt in...

Friday, January 18th, 2019 -Louisiana's Board of Tax Appeals recently ruled that repairs on petroleum storage tanks were not taxable. ...

Nevada Exempts Feminine Hygiene Products in 2019

Wednesday, January 16th, 2019 -Last year, Nevada voters approved via ballot measure changes to the Sales and Use Tax Act of 1955. Voters amen...

Cleaning of Beer-Tap Lines Not Taxable in Ohio

Monday, January 14th, 2019 -The Supreme Court of Ohio recently ruled that cleaning beer-tap lines is not taxable. The taxpayer was...

Louisiana Court of Appeals Finds Marketplace Facilitators...

Friday, January 11th, 2019 -The Louisiana Court of Appeals has recently addressed the sales tax liability of marketplace facilitators. A c...