Allstate Insurance Co. v. Hegar

OPINION

Bob Pemberton, Justice

This is an appeal from a district court judgment in a sales-tax-refund suit. The dispute centers on whether the sales tax can be lawfully imposed on an insurance carrier’s purchases of claims-adjustment services from a third-party vendor. Resolution of that issue turns on the applicability of Tax Code Section 151.057(2), which excludes from taxation certain services performed by an employee of a “temporary employment service.” Following a bench trial, the district court rendered judgment that the carrier take nothing on its refund claims, and the carrier brought…