Texas Comptroller Determines Taxpayer’s Unprocessed Sand Not Taxable

The Texas Comptroller of Public Accounts Jan. 25 determined in a letter ruling whether an entity’s (Taxpayer) sand was processed or unprocessed sand. Taxpayer mined and sold sand, which was used for fracking purposes. Taxpayer inquired about the sales and use taxability of the sand. The comptroller held that the sale of unprocessed sand, gravel, and similar materials wasn’t taxable. However, the sale and transportation of processed materials were taxable. The comptroller found that Taxpayer’s sand wasn’t remixed and was unprocessed sand. Therefore, the sale of Taxpayer’s sand wasn’t taxable. [Tex. Comptroller of Pub. Accts., Comptroller’s Letter No. 20180628141153, Accession ...