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Ezel / Tax Rulings / TX
TX 8410L0593B05 Sales and/or Use Tax (State,Local,MTA) 1984-10-16

Was electricity purchased to transmit cable-television signals exempt from Texas sales tax?

Short answer: No. The Comptroller said electricity purchased to transmit cable-television signals was not exempt from sales tax.

Apply this to your situation

This page answers the general question as of 1984. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1984
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Texas Comptroller said electricity purchased to transmit cable-television signals was not exempt from sales tax.

The ruling does not describe the cable system, metering, allocation, or legal basis for the result.

What this means for you

Cable-service providers

This 1984 letter treated the provider as making a taxable electricity purchase for signal transmission.

Accountants and tax professionals

The source gives no statute or rule. Verify current utility, cable, predominant-use, and exemption provisions.

Common questions

Q: Was the electricity purchase exempt?
A: No.

Q: Does the letter explain why?
A: No.

Citations and references

  • The letter cites no statute or administrative rule.

Source

Original ruling text

October 16, 1984

Dear *****:

Thank you for your recent letter regarding electricity used to
transmit cable television signals.

The purchase of electricity for this purpose is not exempt from
the sales tax.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact me if you have additional questions.
You may write me, or call toll free 1-800-252-5555 from anywhere
in Texas or phone 512/475-1931.

Sincerely,

Al Van Allen
Tax Policy Section
Tax Administration Division

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