Did a predominant-use utility study completed before August 3, 1987 need later engineer certification or a replacement study?

Plain-English summary

A utility planned to send redesigned exemption certificates to customers that had claimed predominant-use exemptions before engineer certification became mandatory.

The Comptroller accepted keeping the old certificate together with the new one. Engineer certification applied to studies performed on or after August 3, 1987. Earlier studies did not need certification or replacement.

If utility uses changed, the study had to be updated to confirm continued qualification, but the update did not require engineer certification.

What this means for you

The ruling grandfathered the certification status of pre-effective-date studies, not unchanged eligibility forever. Changed use still triggered a substantive update.

Common questions

Did an older study need engineer certification? No.

Did the customer need a completely new study? No.

What if utility use changed? The study had to be updated, without engineer certification.

Citations and references

• No numbered statute or rule was cited in the letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9009L1044G11

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller September 10, 1990

Dear **:

Thank you for your letter concerning the updating of your sales tax
exemption certificates.

As I understand, you are going to mail newly designed certificates
to all of your exempt customers and are concerned about exemption
certificates for customers who claimed sales tax exemption based on
predominant use before the requirement that the study be certified
by an engineer.

You requested that customers who were claiming exemption based on
predominant use prior to August 3, 1987, be allowed to complete the
new exemption certificate without requiring engineer's certifica-
tion. You stated that for those customers you would maintain a copy
of the old certificate with the new certificate in your files. Your
request is acceptable.

The requirement that a utility study be certified by an engineer
was effective August 3, 1987, and applies to studies performed on
or after that date. Customers that had studies performed prior to
that date are not required to have those studies certified by an en-
gineer nor to perform new studies. However, studies must be updated
if there are any changes in the utility uses to be sure that the
utility continues to qualify for exemption. The update would not
require an engineer's certification.

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

If you have any questions or need additional information, you may
call me toll free at 1- 800- 252- 5555, extension 3-4666. You may
write to Tax Correspondence, Comptroller of Public Accounts.

Sincerely,
Jo Ann Dieck
Tax Correspondence