Ezel / Tax Rulings / TX
TX 9004L0995G01 Sales and/or Use Tax (State,Local,MTA) 1990-04-09

Was completely gutting and refinishing previously occupied space in a Texas shopping mall new construction or remodeling?

Short answer: It was remodeling. The Comptroller applied Rule 3.357(a)(6) to the work in the existing mall space rather than treating the gut-and-refinish project as new construction.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

The Comptroller classified work in previously occupied shopping-mall space as remodeling under Rule 3.357(a)(6), even though the space was completely gutted and then refinished.

The letter did not provide court decisions or advise the requester whether to take the dispute to district court. It instead referred the requester to the Comptroller's practice-and-procedure rules.

Common questions

Did complete gutting make the project new construction? No. The Comptroller treated it as remodeling.

Did the letter advise whether to sue? No.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

April 9, 1990

Dear *****:

Thank you for your letter dated April 2, 1990, concerning the
work done for ** in space previously occupied by
**'s at the ** Mall in **.

This type of work meets the definition of remodeling given in
section (a)(6) of Rule 3.357. I cannot provide you with copies of
court cases that dealt with the issue of new construction vs.
remodeling. I have enclosed copies of letters, however, that
discuss the position of the Comptroller's office.

I cannot advise you as to whether you should take your case to
District Court. A copy of "The Rules of Practice & Procedure"
will be mailed to you under separate cover. This booklet outlines
the procedure that you must follow if you want to do so.

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

Please feel free to contact me if you have any additional
questions. You may write me, call toll free 1-800-252-5555 (ext.
3-4685) from anywhere in the United States or phone 512/463-4685.

Sincerely,
Julie Pesl
Tax Correspondence

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