Did Texas's power-of-attorney rule apply to both predominant-use and exclusive-use electricity refund claims, and did a defective form alone expose the utility?

Plain-English summary

The Comptroller said Rule 3.295's power-of-attorney requirements applied to electricity sales-tax refunds based on either predominant exempt use or exclusive exempt use.

The utility also asked about accepting a customer-signed power of attorney that appeared legally valid but did not contain the wording required by the tax rule. The Comptroller said that defect alone would not create liability for the utility when it issued the refund.

Common questions

Did Rule 3.295 cover only predominant-use refunds? No. It also covered exclusive-use electricity refunds.

Did a wording defect automatically make the utility liable? No. The letter says that fact alone would not create liability.

Was the answer broader than electricity refunds? No. The letter specifically addressed electricity sales-tax refunds.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8901L0921F07

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller January 17, 1989

Dear ***:

Thank you for you for your letter regarding the power of attorney
submitted to you with sales tax refund requests on electricity.

Your questions are restated below with my responses:

1. Rule 3.295 has specific language as to what should be
   contained in the power of attorney concerning sales tax refunds.
   Does this rule apply to any sales refund or only to predominant
   use refund requests?

Response: The rule applies to a sales tax refund on electricity
whether based on predominant exempt use or exclusive exempt use.

2. Your rule tells what the power of attorney should say, but it
   does not tell us what action to take if the power of attorney does
   not say what it should. If we, as a utility, accept what appears
   to be legal power of attorney with our customer's signature, but
   the power of attorney is not stated to meet the tax code rule, do
   we face a possible liability with the Comptroller's office if we
   give the tax refund?

Response: This alone will not create a liability to the utility
company.

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 1-800-252-5555. My extension is 3-4666. You
may write to Tax Correspondence, Comptroller of Public Accounts.

Sincerely,
Jo Ann Dieck
Tax Correspondence