Taxability of Cleanroom Construction Materials in Texas

Thursday, September 15th, 2011

 
 
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The Texas Comptroller recently issued a ruling discussing the taxability of certain materials used in the construction of pharmaceutical biotechnology cleanrooms. Property that is necessary or that has been adapted to reduce contamination or to control airflow, temperature, humidity, chemical purity, or other environmental conditions or that otherwise qualifies as production machinery will be exempt from tax under Tex. Tax Code Sec. 151.318(b)(3) and (q-1). Property that falls within this exemption includes movable cleanroom partitions, lighting fixtures, piping used to move gas and liquids, and electrical supply and control equipment. Property that is used to construct permanent non-movable components of the cleanroom, such as walls, flooring, and roofing do not qualify for the exemption.


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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.

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