Texas Comptroller Finds Waste Removal Services Provider Failed to Establish Entitlement to Sales Tax Exemption

The Texas Comptroller of Public Accounts Oct. 1 adopted the Administrative Law Judge’s (ALJ) recommendation affirming the Tax Division’s (staff) sales and use tax assessments. The staff audited Taxpayer, a waste removal services provider, and assessed taxes, penalty, and interest. Taxpayer requested a redetermination and provided additional documentation. The staff amended the audit schedules. The ALJ found that Taxpayer failed to establish that: 1) charges directly related to providing taxable real property services and removal of certain empty containers weren’t taxable; 2) charges for tank repair, fence-line clearing, repair and remodeling, nonhazardous waste removal, and rental and sale of tangible ...