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.

Washington Provides Guidance on Lodging Tax for Online...

Friday, October 12th, 2018 -The Washington Department of Revenue released updated guidance that provides tax reporting information for bed...

Economic Nexus in West Virginia

Wednesday, October 10th, 2018 -The West Virginia State Tax Department announced that it will require remote sellers to begin collecting sales...

Idaho Provides Guidance on the Exemption for Medical...

Monday, October 8th, 2018 -The Idaho State Tax Commission recently released guidance that explains Idaho's sales and use tax laws for buy...

Arkansas Does Not Follow Federal Law on Foreign Income

Friday, October 5th, 2018 -The Arkansas Department of Taxation and Finance recently released an opinion that says the state does not conf...

South Dakota Provides Guidance on the Taxation of Churches

Wednesday, October 3rd, 2018 -The South Dakota Department of Revenue (DOR) recently released guidance that provides information about how sa...

Mowing Services to Keep Right of Way Clear Taxable in...

Monday, October 1st, 2018 -The Arkansas Department of Finance and Administration recently ruled that lawn-mowing services to keep a right...