Were platemaking chemicals necessary and essential to printing exempt under the manufacturing rule applied in this 1989 correction?

Plain-English summary

This letter corrected the Comptroller's June 14, 1989 response.

The platemaking chemicals were necessary and essential to the printing process and were exempt under Tax Code § 151.318(a)(2) and Rule 3.300(d)(3)(A). The taxpayer could request a refund of tax paid to its supplier by giving the supplier an exemption certificate and written refund request.

STAR warns that § 151.318 changed in 1997 to narrow the manufacturing exemption and changed again in 1999 to restore some printing-process treatment through a new subsection. This page therefore reports the 1989 holding and the official later-law alert, not a current-law conclusion.

STAR's subject metadata names plates, film, and paper, but the operative body decides only platemaking chemicals.

Common questions

Were the platemaking chemicals exempt in this ruling? Yes.

Could prior tax be recovered? The letter allowed a supplier refund request with the stated documents.

Did the body decide all printing plates, film, and paper? No.

Citations and references

• Tex. Tax Code § 151.318(a)(2)
• 34 Tex. Admin. Code Rule 3.300(d)(3)(A)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8912L0972D07

Original ruling text

ALERT: Effective 10/01/1997 Tax Code Section 151.318 was amended (HB 1855, 75th Leg. Session (1997)) to limit the exemption to tangible personal property directly used in the manufacturing process, and that in addition to being necessary and essential, must now cause a chemical or physical change to the manufactured item. The available exemption discussed in this document was superseded by this change. Then, effective 10/01/1999 Tax Code Section 151.318 was amended (HB 3211. 76th Leg. Session (1999) to retroactively reinstate some provisions that had been dropped by the 1997 legislative change. In this case, 151.318 was amended to include subsection (t) which exempted property necessary and essential to and used in a printing process.

COMPTROLLER OF PUBLIC ACCOUNTS

STATE OF TEXAS

AUSTIN, 78774

December 27, 1989

Dear ****:

This is to correct my June 14, 1989, letter regarding taxability of

platemaking chemicals.

The platemaking chemicals are necessary and essential to the printing

process and are exempt from sales tax under TEX. TAX CODE SEC. 151.318(a)(2).

Please refer to Rule 3.300 Section (d)(3)(A).

You may request a refund of sales tax paid to a supplier on the chemicals

that qualify for exemption. Enclosed is an exemption certificate that may be

completed and issued to the supplier along with a written request for refund of

the tax.

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 additional information, you may call me

toll free at

1-800-252-5555, extension 3-4666. You may write to Tax Correspondence,

Comptroller of Public Accounts.

Sincerely,

Jo Ann Dieck

Tax Correspondence