For Immediate Release
December 6, 1999
TAXPAYERS WIN TAX REFUND RIGHTS WITH COMPTROLLER
AUSTIN, TEXAS - The Texas Supreme Court in Fleming Foods of Texas, Inc. v. Rylander, 6 S.W. 3d 278 (1999), held that Tax Code §111.104, §111.107 and §111.203 do allow an indirect taxpayer to pursue refunds without first obtaining an assignment from the vendor who collected and remitted the tax.
Fleming Foods, a wholesale grocer, purchased packing materials and paid sales taxes to vendors who remitted the taxes to the State of Texas. Fleming obtained assignments of its vendors' rights to refunds of the taxes and requested a refund of taxes directly form the state. The Comptroller denied claims in which the vendor's four-year statute of limitations had expired prior to the Comptroller's receipt of the assignments, even though Fleming and the Comptroller had entered into a series of agreements to extend the four-year limitation period for the assessment of taxes. Fleming sued in Travis County district court, claiming that the disputed refund claims were not barred by the expiration of the vendor's statute of limitations. The district court rendered a take-nothing judgment against Fleming. Fleming appealed, and the Third Court of Appeals affirmed the decision of the trial court. The Texas Supreme Court reversed the judgment of the Court of Appeals. As a result of the Texas Supreme Court's decision, the Comptroller will no longer require indirect taxpayers (who pays tax to a vendor) to obtain refund assignments from vendors who collect and remit state tax. An indirect taxpayer claiming a refund must provide sufficient information for the Comptroller to verify the refund claim, including the vendor's name and taxpayer number.
The SALT Group®, headquartered in the panoramic "Hill Country" of Texas, is one of the largest state and local tax consulting companies in the United States with offices in Houston, Kerrville and San Antonio. The company specializes in providing state and local tax services.
PRESS INFORMATION CONTACT:
Harlan J. Hall
The SALT Group®
(830) 257-1290
E-mail: harlanhall@thesaltgroup.com
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