Daily Tax Report: State

Texas Comptroller Affirms Sales Tax Assessment, Finds Heating, Ventilation, Air-Conditioning Contractor’s Repair, Remodeling Services Taxable

July 10, 2020, 5:00 AM

The Texas Comptroller of Public Accounts May 4 affirmed the Tax Division’s (staff) sales and use tax assessment against Taxpayer, adopting the Administrative Law Judge’s (ALJ) recommendation. Taxpayer was a heating, ventilation, and air conditioning contractor. The staff issued an assessment with late penalties and accrued interest for unreported taxable repair and remodeling services. Taxpayer requested a redetermination, contending that the tax was erroneously assessed on nontaxable new construction services. The ALJ noted that: 1) Taxpayer’s contracts and sales invoices were incomplete and didn’t provide sufficient evidence to support the new construction contention; 2) the staff met its burden to...

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