Opinion No.

Honorable Bob Bullock Comptroller of Public Accounts L.B.J. Building Austin, Texas 78774

Re: Whether gas and electricity used by a restaurant to prepare food for retail consumption is exempt from the sales and use tax, and related questions

Dear Mr. Bullock:

You ask several questions concerning the application of an exemption in the limited sales, excise, and use tax, chapter 151 of the Tax Code, to gas and electricity sold to restaurants as a source of energy to prepare food for consumption by customers. We set out your questions as follows:

1. Is the use of gas and electricity by a restaurant…