Texas State Tax Rulings
Free plain-English summaries of state tax letter rulings and advisory opinions issued in Texas, with full citations and the original source on every page.
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Could a credit-reporting provider buy monthly microfiche credit information for resale, and were its credit-reporting charges taxable?
Yes. The provider could issue a resale certificate for information transferred as part of its credit reports, and its credit-reporting charges were taxable.
Were pager-service fees taxable when the provider supplied equipment or the customer used its own, and how was the equipment purchase treated?
Pager-service fees were taxable either way. Equipment transferred with the service could be bought for resale; retained equipment could not.
Could an insurance adjuster issue a resale certificate when another adjuster worked a loss, and how should the rebilled service be taxed?
The adjuster could issue a resale certificate to the subcontracted adjuster but had to charge sales tax when rebilling the service to its customer.
Were sales of cement kiln dust subject to Texas limited sales tax even though cement production tax was not paid on the kiln dust?
Yes. Sales tax applied unless the buyer provided a properly completed exemption, resale, or direct-payment exemption certificate.
How did Texas tax paging and cellular invoice items including equipment, airtime, installation, repairs, protection, long distance, and resale transactions?
Most listed services and equipment charges were taxable. The letter exempted specified installation before October 1987, late and NSF fees, and limited protection charges.
Who made the taxable sale when customers redeemed seven cheese labels for a free dish fulfilled by a Texas company?
The customer received a gift, not a sale. The fulfillment company sold to the cheese company and collected tax on Texas shipments, including shipping and handling.
Was the lease with a purchase option equal to 69% of estimated fair market value an operating lease, and when was Texas sales tax due?
It was an operating lease because the option was not nominal under Rule 3.294. Tax generally became due with each lease payment, but tax collected upfront had to be reported in that period.
Could a company buy a tractor, trailer, and installed medical equipment tax-free for immediate resale to a lessor?
Yes. Company A could buy the tractor, trailer, and specialized medical equipment without tax because it would immediately resell them to Company X without using them first. Motor vehicle tax became du…
Were newsletter subscription charges, shipping and handling, and binders taxable in Texas?
Newsletter subscription charges and a $5 shipping-and-handling fee were taxable. Included binders could be bought for resale, but binders given away were taxable to the publisher.
Was a turnkey drilling-mud provider selling taxable mud or providing a nontaxable well service, and could charges for consumed mud be treated as loss reimbursement?
The company was a drilling-mud retailer, not a well-service provider. It could buy chemicals for resale but had to tax the full mud price; consumed mud was a sale, not reimbursed loss.
When were vehicle and equipment leases to federal banks or other governmental organizations exempt from Texas tax?
For motor vehicles, the historical exemption required title in the lessor's name, a lease to a qualifying public agency, and exempt license plates; standard plates made the vehicle taxable, and tax on…
Could a developer use a municipal utility district's exemption when fronting the cost of a fire truck built from components?
Yes, through a documented resale structure. The developer could buy the chassis and cab for resale, issue a resale certificate to the fabricator after obtaining a sales tax permit, and retain title as…
How did Texas distinguish vehicle tax from sales tax for attached accessories, rebuilt vehicles, and short-term rental accessories?
Accessories attached when a motor vehicle was purchased entered the motor vehicle tax base; accessories bought for later attachment followed limited sales tax. Initial titling of a vehicle assembled b…
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These are official tax letter rulings and advisory opinions issued by Texas's revenue authority in response to questions from specific taxpayers about how the tax law applies to their facts. A ruling is binding on the department only for the taxpayer who requested it and cannot be relied on by anyone else, but it is strong evidence of how the state reads the law. Every ruling above has a plain-English question and short answer, plus a link to the full original source.