In Reynolds Metals Co. v. Combs (Third Court of Appeals, No. 03-07-00709-CV, Apr. 8, 2009), the Third Court denied the taxpayer’s motion for rehearing. In this case, the taxpayer argued that its purchase of ship unloaders, which operated on rails, qualified as a purchase of exempt rolling stock. The court held that the rolling stock exemption applied only to railway vehicles and not any vehicle that operates on rails. In its denial of the motion for rehearing, the Court withdrew its original opinion and issued a new opinion that elaborated on its holding concerning the taxpayer’s legislative acceptance argument.

The Texas Supreme Court has denied the taxpayer’s petition for review in this case. You can review the revised opinion on the Third Court’s website. http://www.3rdcoa.courts.state.tx.us/opinions/HTMLopinion.asp?OpinionID=18012