Non-Traditional Manufacturer Eligible For Texas Sales Tax Manufacturing Exemption
                     Non-Traditional 
Manufacturer Eligible 
For Texas Sales Tax 
Manufacturing 
Exemption
salestaxtexas.co
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Overvie
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However, as a recent administrative hearing 
decision in Texas confirmed, some non-traditional 
manufacturers may yet qualify for the 
manufacturing exemption from sales tax.
The 
Facts
Taxpayer is a pipe threader. It purchased threading 
equipment designed to make grooves in new 
plain-ended oilfield casings, claiming the 
manufacturing exemption on its purchases of the 
equipment.
Take Baby 
Steps
Tax Division (division) contended taxpayer 
was ineligible for the manufacturing 
exemption as it did not own the casings.
Decisio
nIn the instant case, “Threading of oilfield casing 
causes it to operate in a new or different 
manner, as the casing could not be attached to 
other pieces and installed downhole without 
being threaded.” Thus, division’s claim that 
taxpayer was only providing remodeling 
services was misguided.
Contact 
Us
Web: salestaxtexas.com
Phone: (972) 422-4530
Email: 
[email protected]