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Taylor v. Root Insurance Co.

Court: 5th Cir  07/24/2024  Auto Insurer Did Not Owe Sales Tax in Addition to ACV for Totaled Vehicle

In a putative class action, the Fifth Circuit Court of Appeals held that auto insurer that paid actual cash value for insured's vehicle totaled by hail damage did not owe sales tax because there was no "applicable" sales tax owed in connection with the insurer's payment under the Texas Tax Code, thus the insurer did not breach the policy and for the same reasons no sums were owed under the Texas Prompt Payment of Claims Act.

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