The Tax Division did not present any evidence to the contrary. The judge then concluded that B did prove by a preponderance of the evidence that GAAP allows a corporation to recognize as revenue the gross receipts from a partnership in which it owns a majority interest. When the RRC issues the certification, production can begin. Consequently, once the well is certified by the RRC, charges for most changes made downhole are taxable as nonresidential remodeling. An information service company advertises on the Internet.
Some customers directly download the information after their credit cards have been accepted.
Texas sales tax is due on these information services. When a customer elects to mail its payment rather than do business over the Internet, the service company sends the customer a diskette containing the information. In this situation, no Texas tax is due on diskettes shipped out of state. Because this is a taxable service, a customer may claim an exemption from tax by giving the service company an exemption certificate when the benefit of the service will be derived outside of Texas. See Rule 3.342 for more information.