The Texas Comptroller of Public Accounts discussed the applicability of the Texas exemption of sales and use tax on gas and electricity used for commercial purposes. The utility exemption can only be claimed after the taxpayer completes a predominant use study to determine if the majority of use for the utilities is for exempt or taxable purposes. If the utilities are primarily used for exempt commercial purposes, the entire billing based on a single meter will be exempt. If the utilities are primarily used for non-exempt commercial purposes, the entities utility invoice is taxable. Taxpayers claming the exemption or pursuing a refund without the study will be subject to tax, interest and penalties on the full amount if the exemption is not proven. (Comptroller of Public Accounts Letter, No. 200409774L)