The Austin Court of Appeals upheld a sales tax judgment obtained by SD&M tax litigators Ray Langenberg and Doug Sigel for Health Care Services Corporation (formerly Blue Cross and Blue Shield of Texas). The decision is significant because it clarifies a number of principles regarding the sale-for-resale exemption. The Court affirmed that the exemption covered many of the purchases made by Blue Cross in administering the federal Medicare program and the federal employee benefit program.

The case was Combs v. Health Care Services Corp., Cause No. 03-09-00617-CV.