Could a customer obtain a Texas sales-tax refund for a refrigerator exported to Israel almost two years after it was delivered to the customer's Texas residence?

Plain-English summary

The refrigerator sale did not qualify for Texas's export exemption. It was delivered to the purchaser's residence on January 15, 1988, but the export bill of lading was dated June 1, 1990 and did not specifically identify the shipped items.

An export-exempt purchase had to leave Texas before any use in the state. Storage counted as use, and property remaining in Texas more than 30 days after purchase was presumed stored. The nearly two-year delay meant the sales tax collected on the refrigerator could not be refunded.

Common questions

Does storage count as Texas use? Yes.

What presumption applied? Property in Texas more than 30 days after purchase was presumed stored.

Did the bill of lading prove the refrigerator was exported promptly? No. It was dated almost two years later and described only used household and personal effects.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9008L1033F10

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

BOB BULLOCK
Comptroller

August 7, 1990

Dear **:

Your letter regarding verification of a sales tax refund request
from your customer, **, was forwarded to me for review.

The sales invoice reflects that a refrigerator sold to ***
on January 5, 1988, was delivered to his residence on January 15,
1988. The export bill of lading from COMPANY ABC, reflects that
"used household and personal effects" were loaded on-board from
Houston for destination to Israel. The specific items shipped
were not identified. The export bill of lading was dated June 1,
1990.

To qualify as an export exempt from sales and use tax, the proper-
ty purchased must be exported prior to any use in Texas. Storage
is a use. Property in Texas longer than 30-days from the date of
purchase is presumed to have been stored. In the above situation,
there is a difference of almost two years from the date the refrig-
erator was delivered to the purchaser until it was exported to
Israel. Based on the information presented, the sale does not qual-
ify for exemption and the sales tax collected on the refrigerator
cannot be refunded.

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

If you have any questions or need additional information, you may
call toll free 1-800-252-5555 or the regular number 512/463-4600.
My extension is 3-4666. You may write to Tax Correspondence, Comp-
troller of Public Accounts.

Sincerely,
Jo Ann Dieck
Tax Correspondence