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Ezel / Tax Rulings / TX
TX 8901L0919G13 Sales and/or Use Tax (State,Local,MTA) 1989-01-13

Could an airline give an exemption certificate for approved improvements to public airport terminals?

Short answer: Yes under the stated facts. The tax-exempt airport was the ultimate beneficiary, and the approved terminal improvements directly benefited the airport and public.

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This page answers the general question as of 1989. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1989
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

An airline planned construction and improvements around public passenger terminals at Dallas/Fort Worth International Airport. Every plan required airport approval.

The Comptroller treated the airport as a tax-exempt entity similar to a city and identified it as the ultimate beneficiary of improvements to facilities used daily by the traveling public. Under those facts, the airline could provide an exemption certificate for work performed on the airport facilities.

Common questions

Could the airline give an exemption certificate? Yes under the stated facts.

Why? The tax-exempt airport was the ultimate beneficiary, and the improvements directly benefited the airport and public.

Did the airport control the plans? Yes. The letter says all construction and improvement plans required airport approval.

Source

Original ruling text

Comptroller of Texas
State of Texas
Austin, Texas 78774

Bob Bullock

Comptroller January 13, 1989

Dear *:

Mr. Roberts asked that I respond to * Airlines request dated
January 9, 1989, concerning construction and improvement efforts,
in and around public passenger terminals 2E, 2W and 3E, at the
Dallas/Ft. Worth International Airport over the next 36 months.

As noted in * Airlines letter, all plans for construction and
improvement effort must be approved by the Dallas/Ft. Worth
International Airport.

The Dallas/Ft. Worth International Airport is a tax-exempt entity,
similar to a city, and will be the ultimate beneficiary of the
construction and improvements. Since the improvements are to fa-
cilities used daily by the public at large in connection with air
travel, we believe the Airport and the public are directly benefited
by the presence and operation of the terminals and the improvements.

Under the above facts, * Airlines may give an exemption certifi-
cate for work to be performed on these airport facilities.

Sincerely yours,
Willis Whatley
Deputy Comptroller

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