Southwest Royalties, Inc. v. Glenn Hegar, Comptroller of Public Accounts of the State of Texas, and Ken Paxton, Attorney General of the State of Texas

The question in this tax-refund case is whether an oil and gas exploration and production company proved that its purchases of casing, tubing, other well equipment, and associated services were exempt from sales taxes under a statutory exemption. The trial court found that the company did not prove it was entitled to the exemption. The court of appeals affirmed. We likewise affirm.'

I. Background

Southwest Royalties, Inc. is an oil and gas exploration and production company. It purchased and paid sales taxes on equipment, materials, and associated services related to its oil and gas production…