ChampionX Locks Down $3 Million Texas Sales Tax Refund on Appeal

Containers that ChampionX LLC uses to transport chemicals to its energy industry customers are exempt from sales and use tax, Texas’ statewide appeals court ruled Thursday, affirming a $3.17 million refund order.

Contrary to the state comptroller’s arguments, it wasn’t inappropriate for the trial court to apply the manufacturing exemption when a narrower exemption for containers exists, the Texas Fifteenth Court of Appeals said.

“Nothing in the Tax Code suggests that if property does not qualify for a Container Exemption, then it cannot be considered for a Manufacturing Exemption,” Justice April Farris wrote for the court. “While both statutes ...