Ezel / Tax Rulings / TX
TX 9001L0979A10 Sales and/or Use Tax (State,Local,MTA) 1990-01-26

Could four nursing homes obtain sales-tax refunds on now-inactive natural gas and electricity accounts?

Short answer: Yes for qualifying billing periods beginning on or after January 1, 1988, if they gave the utilities properly completed exemption certificates and written refund requests. State, county, and transit tax was exempt; city tax could remain due.

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This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Natural gas and electricity used by nursing homes was treated as residential use effective January 1, 1988.

Billing periods beginning on or after that date could be exempt from state, county, and MTA/CTD sales taxes. City tax remained due in cities that retained tax on residential use.

The four nursing homes could obtain refunds on their inactive accounts if they provided the utility companies with properly completed exemption certificates and written refund requests.

Common questions

Could inactive accounts receive refunds? Yes, under the stated documentation conditions.

How far back did the letter allow relief? Qualifying billing periods beginning on or after January 1, 1988.

Was city tax always exempt? No.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller January 26, 1990

Dear ***:

Thank you for your letter regarding a sales tax refund on natural
gas and electricity for four nursing homes that are now diverted.

Natural gas and electricity used in nursing homes is considered to
be residential use effective January 1, 1988. Therefore, billing
periods beginning on or after January 1, 1988, can be exempted
from the state, county, and MTA/CTD sales taxes. The city tax
will be due in those cities that have retained the city tax on
residential use.

A completed exemption certificate must be issued to the utility
supplier to claim tax exemption. A claim for refund of tax back
to January 1988 must be in writing to the utility supplier.

Sales tax may be refunded on the inactive natural gas and elec-
tricity accounts for the *** Nursing Centers (2 in
CITY A, 1 in CITY B, and 1 in CITY C) if you have provided pro-
perly completed exemption certificates and written requests for
refund of tax to the utility companies.

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, or the
regular number 512/463-4666. You may write to Tax Correspondence,
Comptroller of Public Accounts.

Sincerely,
Jo Ann Dieck
Tax Correspondence

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