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Ezel / Tax Rulings / TX
TX 9003L0995B09 Sales and/or Use Tax (State,Local,MTA) 1990-03-26

Which restaurant equipment qualified for Texas's 1990 processing-equipment refund?

Short answer: Restaurants were processors eligible to request a refund of 25% of state sales tax paid on qualifying equipment bought on or after January 1, 1990. Fryers, ovens, mixers, broilers, and stoves qualified; steam tables, refrigeration, dishwashers, and water heaters did not.

Apply this to your situation

This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 1990 letter treated restaurants as processors eligible to request a refund of 25% of state sales tax paid on qualifying processing equipment purchased on or after January 1, 1990. Refund requests could begin in 1991.

Only equipment used directly to process food for sale qualified. The letter listed fryers, ovens, mixers, broilers, and stoves as examples. Steam tables, refrigeration equipment, dishwashers, and water heaters did not qualify because they were not used directly in processing.

Common questions

What percentage could be refunded? Twenty-five percent of the state sales tax paid under the 1990 program described.

Which equipment qualified? Direct processing equipment such as fryers, ovens, mixers, broilers, and stoves.

Did refrigeration equipment qualify? No.

Source

Original ruling text

March 26, 1990

Dear **:

Thank you for your letter of March 8, 1990, concerning the application of the
manufacturing exemption to restaurants.

Restaurants are considered processors and are eligible for a refund of 25% of
the state sales tax paid on processing equipment purchased on or after January
1 1990. The request for refund may be made beginning in 1991.

The exemption will apply only to equipment used directly in processing food for
sale. Examples include fryers, ovens, mixers, broilers, and stoves and ovens.
The exemption does not apply to equipment that is not directly used in
processing, such as steam tables, refrigeration equipment, dishwashers, and
water heaters.

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

If you have any questions or need more information, you may call toll-free
1-800-252-5555, ext. 304683. The regular number is 512/ 463-4600. You may write
me at Tax Correspondence, Correspondence, Comptroller of Public Accounts.

Sincerely,

Eddie C. Washington
Tax Correspondence

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