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Ezel / Tax Rulings / TX
TX 8606L0739G07 Sales and/or Use Tax (State,Local,MTA) 1986-06-11

Did the value paid under the submitted contract's price, billing, and tax provisions include tax reimbursement?

Short answer: No. After reviewing the submitted contract sections, the Comptroller concluded that the value being paid did not include tax reimbursement.

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This page answers the general question as of 1986. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1986
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 requester submitted the contract's price-and-billing provisions and tax provisions for review.

On that limited record, the Comptroller concluded that the value being paid did not include tax reimbursement. The letter provides no further contract language or calculation.

Common questions

Did the contract value include tax reimbursement? No.

What provisions did the Comptroller review? The supplied price-and-billing and tax sections.

Did the letter explain the detailed contract analysis? No.

Source

Original ruling text

June 11, 1986

Dear ***:

Thank you for furnishing me with the portion of the contract referring
to the Price and Billings, as well as the Taxes sections.

I have reviewed the information furnished and am of the opinion that
the value being paid does not include tax reimbursement.

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

Please feel free to contact us if you have additional questions. You
may write us, call toll free 1-800-252-5555 from anywhere in Texas.

Sincerely,

Tax Policy
Tax Administration Division

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