AUSTIN - Today, the Third Court of Appeals affirmed a trial court’s final judgment denying Cheddar’s Casual Café refund claim for alleged overpayment of sales taxes for certain items purchased for use in its restaurants.
According to the opinion, Cheddar’s had claimed its refund entitlement under the “Sale for Resale” exemption in section 151.302 of the Texas Tax Code. Cheddar’s also challenged the validity of one of the Texas Comptroller’s rules related to the sale-for-resale exemption.
Following a bench trial, the trial court rendered a final judgment disallowing the exemption and denying the rule challenge, court records state.
On appeal, Cheddar’s argued that the trial court erred in disallowing the exemption and denying the rule challenge.
The Third Court found that Cheddar’s purchase of the smallwares at issue in the case did not qualify for the sale-for-resale exemption.
“Consequently, the trial court did not err in determining that Cheddar’s was not entitled to a sales tax refund and rendering judgment that Cheddar’s take nothing,” the opinion states.
Appeals case No. 03-21-00035-CV