Was sales tax owed by an insolvent savings and loan a legally enforceable purchaser debt that the Resolution Trust Corporation receiver should pay to the seller?

Plain-English summary

Sales tax owed by the insolvent savings and loan was a legitimate debt payable by its Resolution Trust Corporation receiver.

Texas Tax Code section 151.052 required a seller to add sales tax to the price of a taxable sale. The added tax became part of the sales price, a debt from the purchaser to the seller, and was recoverable like the underlying price.

The Comptroller told the receiver to pay creditors that submitted the required documentation for the institution's tax debt.

Common questions

Was the unpaid tax a legal debt? Yes.

Who owed it? The purchaser in receivership.

What did creditors need? The required documentation supporting the claim.

Citations and references

• Tex. Tax Code § 151.052.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9007L1033C06

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774
BOB BULLOCK
Comptroller July 17, 1990

Dear **:

Your letter concerning sales tax owed to your company by an
insolvent company now in receivership has been forwarded to
me.

Taxes owed to you by Company ABC are legal debts. These
taxes should be remitted to your company by the receiver,
Resolution Trust Corporation.

I have enclosed a copy of a letter sent to Resolution Trust.

Thank you for your diligence and assistance.

Sincerely,
Larry Koenig
Taxability Section
Legal Services Division

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

BOB BULLOCK
Comptroller July 17, 1990

Dear ** :

We have received an inquiry from a creditor of COMPANY ABC
concerning sales tax due from this S & L. We understand
that Resolution Trust Corporation (RTC) has been appointed
receiver of the institution.

The creditor informed us that RTC has notified all credit-
ors that any charges representing taxes owed by COMPANY ABC
will not be reviewed by RTC and should not be included in
claims filed.

Section 151.052 of the Texas sales and use tax statute pro-
vides that a seller who makes a taxable sale must add the
amount of sales tax to the sales price. The tax then becomes
a part of the sales price, is a debt of the purchaser to the
seller and is recoverable at law in the same manner as the
original sales price.

The sales tax liability of COMPANY ABC is a legitimate debt
of the corporation and payment should be made to the credit-
ors who submit the required documentation.

This opinion is based on the facts presented. If there are
additional facts, or if the circumstances change, the opin-
ion may change.

Please write or call if you have any questions. You can call
toll-free at 800-531-5441. Our regular number is 512-463-3830
and our FAX number is 512-475-0900.

Sincerely,
Larry Koenig
Taxability Section
Legal Services Division