Did a Texas sales-tax refund assignment have to state the assigned refund amount to be legally effective?

Plain-English summary

The Comptroller agreed that a refund assignment did not have to state the assigned refund amount on its face to be legally effective. Assignment forms without the amount would be accepted.

For the country-club refunds discussed in the letter, the club remained entirely responsible for proving the refund amount and maintaining proper evidence. The Comptroller nevertheless urged use of forms stating the amount because they reduced uncertainty for members and expedited the refund process.

What this means for you

Omitting the amount did not invalidate the assignment in this ruling, but it shifted no evidentiary burden: the assignor still had to substantiate the amount.

Common questions

Was a stated dollar amount legally required on the assignment form? No.

Would the Comptroller accept a form without the amount? Yes.

Who had to prove the amount? The country club assigning the refund right.

Citations and references

• No numbered statute or rule was cited in the letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9010L1047C11

Original ruling text

Comptroller of Public Accounts
State of Texas
Austin, Texas 78774

October 4, 1990

Dear *:

I received your letter of September 19, 1990 about the refund
assignments that Eddie Washington addressed in his letter of
June 20, 1990 to *.

Before writing you back I wanted to check the background on
that letter, which I've now done.

I do agree with you that an assignment form does not have to
specify the amount of the refund that the assignor is assign-
ing in order to be legally effective. This requirement came
about because of the number of complaints we received from
country club members who couldn't get the country club to tell
them how much was at stake. Having the amount on the assign-
ment form also makes granting the refund easier, because there
is no question how much it is for.

However, assignment forms without the amount on their face will
be accepted. The country Club will be entirely responsible for
proving up the amount of the refund and having the proper evi-
dence on hand. We will assume the Club will deal with any com-
plaints directly with its members. We would like to urge your
clients to use the forms with the amount on them, since experi-
ence has shown these forms expedite the refund.

If I can be of further help, the toll-free number is 1-800-531-
5441 ext. 3-4677. My direct number is 512- 463-4677, and the
fax is 512-475-0900.

Sincerely,
Lucy Glover