Texas Comptroller Affirms Sales Tax Assessment Against Taxpayer for Construction Services

The Texas Comptroller of Public Accounts issued a decision adopting the Administrative Law Judge’s (ALJ) proposed decision, to uphold an assessment for sales tax on a variety of construction services, including new commercial construction, repairing, and remodeling, for tax years 2014-2017. The taxpayer failed to maintain proper records to substantiate deductions for the construction services, and was assessed additional sales tax. Upon appeal, the ALJ determined that: 1) when tax is imposed on tangible personal property, the taxing entity’s prima facie burden of proof is easily met because, unless an exemption applies, all sales of tangible personal property is taxable; ...