Ezel / Tax Rulings / TX
TX 9007L1031E01 Sales and/or Use Tax (State,Local,MTA) 1990-07-17

Did gas used in afterburners and electricity used by fans in regulator-required air-cleaning equipment attached to a printing press qualify as exempt utility use?

Short answer: Yes. Required pollution-control equipment connected with the printing process was treated as necessary and essential manufacturing equipment and qualified for the phased-in exemption if purchased on or after January 1, 1990. Gas burned in the afterburners and electricity powering the fans both counted as exempt use in the predominant-use calculation.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Regulator-required pollution-control equipment attached to the printing press was treated as necessary and essential to manufacturing and qualified for the phased-in exemption if purchased on or after January 1, 1990.

Natural gas used in the afterburners to destroy hazardous air waste counted as exempt use when computing predominant utility use. Electricity powering the fans that moved air through the cleaning equipment also qualified.

Common questions

Did the required air-cleaning equipment qualify for the phased-in exemption? Yes, if purchased on or after January 1, 1990.

Afterburner gas exempt use? Yes.

Fan electricity exempt use? Yes.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

BOB BULLOCK
Comptroller

July 17, 1990

Dear *:

This is in response to your request for a ruling on gas and electricity
used in air cleaning equipment attached to a printing press. The air
cleaners, which contain afterburners, are required by State and Federal
regulatory authorities. The electricity is used to power fans that move
air through the air cleaning equipment.

Based on a recent court case, pollution control equipment required by a
regulatory authority in connection with a particular manufacturing pro-
cess is now considered necessary and essential to the manufacturing
process and will qualify for the phased-in exemption if purchased on or
after January 1, 1990.

Since gas is used in the afterburners of the air cleaning equipment to
burn away hazardous waste in the air, the gas is in effect a pollution
control device and will qualify as exempt use when computing predominant
use.

The electricity used to power the fans will also qualify as exempt use
as the fans are part of the pollution control equipment.

I want to thank you for your patience during the period that we were
working on your inquiry.

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

If you have any questions or need more information, please call our
toll-free number 1-800- 531- 5441. The regular number is 512/463-4502.
You may write me at Taxability, Legal Services Division.
[FAX (512) 475-0900]

Sincerely,
Gilbert Zamora
Taxability, Legal Services Division

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