X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
GATX Terminals Corporation (GATX) operates two facilities on the Houston ship channel, referred to as “tank farms,” where petroleum and petrochemical products are unloaded from transport vehicles and stored in large, steel tanks until they are ready to be loaded again for distribution. The Comptroller assessed taxes against GATX for services performed at its Galena Park facility during audit periods from April 1989 through August 1992, and from September 1992 through June 1996. GATX sought a redetermination of the taxes and a refund from the Comptroller. See Tex. Tax Code Ann. �� 111.009, .105 (West 2001). After the Comptroller denied the request, GATX paid the deficiency under protest and subsequently filed suit in district court seeking a refund. See id. �� 112.051, .052, .151.

The Tax Code designates “real property repair and remodeling” as a taxable service. Id. � 151.0101(a)(13) (West 2002). The Comptroller has implemented a rule which describes the types of services that are subject to tax and classifies as non-taxable two activities: “maintenance” and “new construction.” See 34 Tex. Admin. Code � 3.357 (2001) (Comptroller of Public Accounts, Labor Relating to Nonresidential Real Property Repair, Remodeling, Restoration, Maintenance, New Construction, & Residential Property) (“Rule 3.357″). GATX argued to the Comptroller and the district court that repainting its tanks is non-taxable maintenance, and that work performed to bring the facility into compliance with environmental regulations is non-taxable new construction. The district court tried the issues de novo. See Tex. Tax Code Ann. � 112.054 (West 2001).

After awarding certain refund amounts stipulated to by the parties, the district court denied the balance of GATX’s claims for a refund. *fn2 GATX presents compelling arguments for why the disputed services should not be classified as taxable repair and remodeling. After closely reviewing the definitions set forth in the statute and in the Comptroller’s rules and decisions, however, we find that the evidence is sufficient to uphold the trial court’s judgment denying the refunds.

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

Premium Subscription

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now

Team Accounts

Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now

Bundle Subscriptions

Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now

Complex Claims & Litigation Forum 2024

February 26, 2024 - February 28, 2024
Las Vegas, NV

The conference experience aimed to help insurers and litigators Prevent, Prepare, and Prevail in complex claims cases and risks.


Learn More

Women, Influence & Power in Law UK Awards 2024

March 06, 2024
London, UK

Women, Influence & Power in Law UK Awards honors women lawyers who have made a remarkable difference in the legal profession.


Learn More

Florida Legal Awards (FLLA) 2024

April 04, 2024
Miami, FL

Daily Business Review honors attorneys and judges who have made a remarkable difference in the legal profession in Florida.


Learn More

PERSONAL INJURY ATTORNEY & WORKERS COMPENSATION ATTORNEY WOODBRIDGE, NJ


Gill & Chamas, LLC seeks an attorney to work in their Woodbridge, NJ Office. Candidate must possess either of the following: 1-3+ year...


Apply Now ›

Associate Attorney


Seeking Estate Administration Attorney for busy boutique office. Huge upside potential and growth opportunity.NYS Bar Admission and relevan...


Apply Now ›

San Francisco Labor & Employment Senior Litigation Associate


Duane Morris LLP has an immediate opening for a senior level, highly motivated litigation associate to join its dynamic and growing Employme...


Apply Now ›

Blume Forte Fried Zerres & Molinari

02/19/2024
New Jersey Law Journal

Frederick D. Miceli has joined the firm as Of Counsel


View Announcement ›

BENCHMARK RESOLUTION SERVICES, LLC

01/29/2024
New Jersey Law Journal

Professional Announcement


View Announcement ›

Aaronson Rappaport Feinstein & Deutsch, LLP

01/29/2024
New York Law Journal

YANIQUE L. BURKE


View Announcement ›