Figure: 34 TAC §3.438(b)(4)
Example:
| Date | Buyer A | Buyer B | Buyer C | |
|---|---|---|---|---|
| July 5 | 5,000 gal. | 10,000 gal. | 10,000 gal. | |
| July 10 | 2,500 gal. | 10,000 gal. | 10,000 gal. | |
| July 15 | 2,500 gal. | 2,500 gal. | ||
| July 20 | 3,000 gal. | |||
| The sale to Buyer A on July 20 is not taxable because it is the sale that caused the 10,000 gallon limit to be exceeded. The sale on July 10 to Buyer B is not taxable because it is the sale that caused the 10,000 gallon limit to be exceeded. The sale to Buyer C on July 15 is taxable because the 10,000 gallon limit was exceeded with the purchase on July 10. | ||||