Texas Comptroller Issues Decision on Exemptions for Wastewater Processing Equipment, Chemicals

The Texas Comptroller issued a private letter ruling regarding sales tax exemptions on tangible personal property used to process, reuse, and recycle wastewater that will be used in fracturing work. Taxpayer designs, builds, and operates water infrastructure and provides services to the oil and gas industry. Taxpayer disposes of and treats different types of water and liquids and sells treated water to oil and gas operators. Taxpayer sought to know if equipment and supplies used to recycle wastewater are exempt from taxation. The Comptroller held that Taxpayer’s equipment and chemicals are not specifically used to process, reuse, or recycle wastewater ...