Ezel / Tax Rulings / TX
TX 9201L1151C13 Sales and/or Use Tax (State,Local,MTA) 1992-01-01

Was mesquite wood purchased by a restaurant for cooking food for sale exempt from Texas sales tax?

Short answer: Yes. Wood used to cook food for sale qualified for exemption, provided the seller obtained a properly completed exemption certificate from the purchaser instead of collecting tax.

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This page answers the general question as of 1992. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1992
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

The requester asked about mesquite wood used by restaurants to cook food. The Comptroller said wood used in cooking food for sale qualified for exemption from sales tax.

The seller had to obtain a properly completed exemption certificate from the purchaser instead of collecting tax.

STAR lists the document's issued date as January 1, 1992, while the published letter itself is dated January 14, 1992. This page keeps STAR's date in metadata and preserves the visible letter date below.

What this means for you

A restaurant and its supplier should document that the wood is used to cook food for sale and retain the completed exemption certificate described in the letter.

Common questions

Was mesquite cooking wood taxable? No when used to cook food for sale. What documentation was required? A properly completed exemption certificate. Did the letter discuss wood used for heating or other purposes? No.

Citations and references

  • The letter states the exemption and certificate requirement but does not identify a numbered statute or rule.

Source

Original ruling text

January 14, 1992

Dear ****:

Thank you for your letter regarding the taxability of mesquite wood used
in restaurants for cooking food. I hope you will accept my apology for the
delay in answering your question.

The wood used in cooking food for sale qualifies for exemption from sales
tax. A properly completed exemption certificate must be obtained from the
purchaser in lieu of tax.

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

If you have any questions, please don't hesitate to write the Tax
Administration Division or call one of our tax specialists toll free at
1-800-252-5555.

Sincerely,

Joan Hale
Tax Administration Division

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