Ezel / Tax Rulings / TX
TX 8608L0753A01 Sales and/or Use Tax (State,Local,MTA) 1986-08-06

Was electricity used for lighting at a manufacturing or processing facility exempt from Texas sales tax?

Short answer: It depended on location. Lighting directly in the manufacturing or processing production area was exempt use, while lighting in hallways, storage rooms, and other nonproduction areas was taxable use.

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This page answers the general question as of 1986. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1986
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

Electricity for lights located directly in the manufacturing or processing production area was exempt use.

Lighting elsewhere in the same facility was taxable when it was not directly in the production area. The letter gave hallways and storage rooms as examples.

Common questions

Was all lighting inside a manufacturing facility exempt? No.

What lighting was exempt? Lighting directly in the manufacturing or processing production area.

What lighting was taxable? Lighting in nonproduction areas such as hallways and storage rooms.

Source

Original ruling text

August 6, 1986

Dear ***:

Thank you for your letter of July 29, 1986, regarding taxability of
electricity for lights in the manufacturing or processing area.

Electricity for lights that are directly in the manufacturing or
processing area of the facility is exempt use. Lights that are in
the manufacturing or processing facility, but not directly in the
production area are taxable use (i.e., hallways, storage rooms, etc.).

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact us if you have additional questions. You
may write us, call toll free 1-800-252-5555 from anywhere in Texas
or phone 512/463-4600.

Sincerely,

(Mrs.) Jo Ann Dieck
Tax Policy Section
Tax Administration Division

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