Texas –Border States Exemption Certificate Sales Tax Assessment Upheld (HK Global v. Comptroller)

SALT Report 3322 – On March 28, 2014 The Travis County District Court rendered a decision regarding HK Global’s border states refunds.  HK Global sold items to customers charging sales tax and subsequently refunded the tax upon presentation of proof of exemption (Customs Broker Exemption Certificate).  Texas code set a 24 hour waiting period before the refunds could be granted on each transaction in order to prevent fraud.  HK Global asserted that the 24 hour limitation facially violated the Import Export Clause of the United States Constitution and brought this case forward.

HK Global lost their challenge and was denied their refund request.

For Further Information:

HK Global v. Susan Combs Texas Comptroller 03-13-00260-cv