Was flexlight used as a printing plate exempt from Texas sales tax when a printer manufactured products for sale?

Plain-English summary

The requester asked whether a published summary of Hearing Decision No. 23,434 correctly described the treatment of flexlight used as printing plates.

The Comptroller said the summary was accurate and applied to Texas printers selling their products. The administrative law judge had held that flexlight used as a printing plate was necessary and essential to manufacturing.

Because flexlight was neither "machinery" nor "equipment" under Rule 3.300(a), it did not have to satisfy the less-than-six-month useful-life test. It was exempt when a printer used it to manufacture a product for sale.

What this means for you

For the printing use described, flexlight qualified as an exempt manufacturing input without being tested under the useful-life rule that applied to machinery or equipment.

Common questions

What was flexlight used for? As a printing plate.

Why was it exempt? The hearing decision found it necessary and essential to manufacturing a product for sale.

Was flexlight treated as machinery or equipment? No.

Did the six-month useful-life test apply? No.

Citations and references

• Hearing Decision No. 23,434 — administrative decision whose summary the Comptroller confirmed
• 34 Tex. Admin. Code Rule 3.300(a) — definitions of machinery and equipment discussed 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/9105L1113G13

Original ruling text

May 30, 1991

Dear ***:

Thank you for your letter asking about the hearing decision number 23,434
summary that appeared in ***.

The summary of the decision is accurate and does applyto Texas printers
that sell their product. The Administrative Law Judge held that flexlight
used as a printing plate is necessary and essential to the manufacturing
process. Also, since flexlight does not meet the definitions of either
"machinery" or "equipment" under Sales Tax Rule 3.300(a), it does not
have to meet the less-than-six month-useful-life-test and is therefore
exempt when used by a printer when manufacturing a product for sale.

This opinion is based on the facts presented. Other facts though similar,
may provide a different result.

If you have other questions or need more information please call or write.
The toll free number is 1-800-531-5441, my extension is 3-4675. The
regular number is (512) 463-4675.

Sincerely,

Tom Soto
Tax Administration