Texas Comptroller Finds Ball Team Not Entitled to Sales Tax Refund for Electric Service Charges

The Texas Comptroller of Public Accounts determined that the taxpayer, a professional baseball team, was not entitled to a refund of sales and use tax paid on pass-through charges for transmission and distribution (T&D) services from its retail electric provider (REP). The taxpayer contended prior Controller decisions and Comptroller policy addressing the taxability of charges for T&D services by an REP were factually and legally incorrect. The Comptroller disagreed with the taxpayer’s proposition that the REP’s charges for T&D services were not components of the charge for electricity, but reimbursements for nontaxable T&D services sold by transmission and delivery utilities ...