What documentation supported a Texas sales-tax refund for work claimed as new construction rather than nonresidential remodeling?

Plain-English summary

The Comptroller delayed a third-quarter 1991 refund while verifying that the work was new construction. A city chief structural inspector confirmed that the building permit was for a new structure.

Based on that verification, the Credits Verification Section would process the refund. The response enclosed Rule 3.357 and pointed to subsection (b)(7) for documentation showing whether a job was new construction or repair and remodeling.

What this means for you

The refund turned on contemporaneous third-party permit evidence establishing that the project involved a new structure. The ruling did not supply a general percentage allocation between new construction and remodeling.

Common questions

Why had the refund been delayed? The Comptroller needed to verify that the work was new construction.

What evidence resolved the question? Confirmation from the city's chief structural inspector about the building permit.

Where did the letter direct taxpayers for documentation guidance? Rule 3.357(b)(7).

Citations and references

• 34 Tex. Admin. Code Rule 3.357(b)(7), real-property repair and remodeling documentation

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9203L1167A09

Original ruling text

March 19, 1992

Dear **:

I apologize for any delay of your refund for the third quarter of 1991.
It was necessary to verify that the work performed was for new construction.

I verified through the Chief Structural Inspector for the City of
** that the building permit issued for the construction at
* in *** was for a new structure. Based on this
information, our Credits Verification Section will process your refund request.

I am enclosing a copy of Rule 3.357 on real property repair and
remodeling. Guidelines on what documentation issued to show whether a job is
new construction or repair and remodeling is presented in subsection (b)(7) of
that rule.

This opinion is based on the facts that you presented. If there are
additional or different facts, this opinion may change.

You may call me toll-free 1-800-252-5555, ext. 5-0030. The direct line
is 512/475-0030. You may also write to Tax Administration Division,
Comptroller of Public Accounts.

Sincerely,

David Somerville
Tax Administration Division