The Texas Supreme Court held that a government contractor was entitled to a sales and use tax refund for tax paid on tangible personal property and taxable services, but not leases of tangible personal property, purchased for use to perform a contract to administer two health insurance programs. The Court said the sale-for-resale exemption applied to the tangible personal property and taxable services because they were resold to the government in the form and condition in which they were acquired. No evidence was provided to support that the leased property was re-leased (resold) to the government. Therefore, the Court held that the taxpayer used the leased property during the performance of the contract.[Combs. v. Health Care Services Corp., TX, Nos. 11-0283, 11-0652, 6/7/13]
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