The court of appeals held that toys used to stock coin-operated amusement machines were exempt from sales tax under the Tax Code's sale-for-resale exemption. The toys are subject to the sale-for-resale exemption because under Texas Tax Code §151.006(3), the toys are "tangible personal property" acquired by the taxpayer "for the purpose of transferring" the toys "as an integral part of a taxable service." The court of appeals' judgment is affirmed. Texas Supreme Court, No. 11-0261, 03-08-2013.
Combs v. Roark Amusement & Vending L.P.
Tx. Sup. Ct.
March 13, 2013