Ezel / Tax Rulings / TX
TX 8806L0938D03 Sales and/or Use Tax (State,Local,MTA) 1988-06-30

Could a fiberglass manufacturer buy glass electrodes exempt from Texas sales and use tax?

Short answer: Yes. Texas concluded that glass electrodes used to manufacture fiberglass qualified for exemption because the electrodes entered into or became an ingredient or component part of the manufactured fiberglass product.

Apply this to your situation

This page answers the general question as of 1988. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1988
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Texas concluded that glass electrodes used in manufacturing fiberglass qualified for a sales-and-use-tax exemption because the electrodes entered into or became an ingredient or component part of the fiberglass product.

What this means for you

Fiberglass manufacturers

Under the facts presented, the glass electrodes were not merely tools or consumables used alongside production. Their incorporation into the finished product supported the exemption.

Accountants and tax professionals

The letter states the component-part rationale but does not identify a statute or administrative rule by number. Confirm current exemption requirements and documentation before applying the result today.

Common questions

Q: Were the glass electrodes exempt?
A: Yes.

Q: Why?
A: The letter says they entered into or became an ingredient or component part of the manufactured fiberglass.

Q: Does the letter cite a specific provision?
A: No. It states the exemption standard without a numbered citation.

Q: Can another manufacturer rely on this 1988 letter?
A: No. It was based on the requesting taxpayer's facts and may not reflect current law or policy.

Citations and references

The letter applies an ingredient-or-component-part exemption but cites no specific Tax Code section or Comptroller rule by number.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

June 30, 1988

Dear ****:

Thank you for your letter of June 17, 1988, concerning the taxability of
the
glass electrodes used in manufacturing fiberglass.

The glass electrodes quality for exemption from Texas sales and use tax
because the electrodes enter into or becomes an ingredient or component
part of the manufactured product (fiberglas).

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

If you have any questions or need more information, please call our toll-
free number 1-800-531-5441. The regular number is 512/463-4600. You may
write me at Tax Correspondence, Comptroller of Public Accounts.

Sincerely,
Eddie C. Washington
Tax Correspondence

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