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Texas Appeals Court Frees Hotel From Tax On Toiletries

Law360, Dallas (April 11, 2013, 8:12 PM EDT) -- Hotels in Texas aren’t required to pay state sales tax on the consumable products, like soaps and shampoos, they provide for guests, a Texas appeals court said Thursday, granting hotelier DTWC Corp.’s request for a refund from the state.

Under the sale-for-resale exemption in state tax code, the hotel-provided consumable amenities qualify as tangible personal property, the Austin Court of Appeals held. And because hotels buy the items for the express purpose of reselling them to customers — by factoring the cost of the toiletries into...
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