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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Were skin-care treatments, waxing, makeup applications, take-home products, and massages taxable in Texas?
Treatments, waxing, and makeup applications were not taxable. Take-home items and most massages were taxable, subject to stated massage exceptions.
Was a lump-sum charge for concert lighting, sound, equipment setup, operation, and removal taxable in Texas?
No. The service remained nontaxable when one lump-sum amount covered company-owned equipment and the personnel who set up, operated, and removed it.
Were dumpster-service charges and landfill tipping fees subject to Texas sales tax?
The dumpster-service charge was taxable, but the separate landfill tipping fee was not because the Comptroller did not treat it as a solid-waste collection charge.
Could a restaurant seek a refund for qualifying natural gas or electricity use before food-preparation electricity became taxable on October 1, 1987?
Yes, if the utility met Rule 3.295's exemption requirements. No exemption applied to billing periods beginning on or after October 1, 1987.
Were maid and housekeeping services taxable at commercial and residential locations, and how were private-household employees treated?
The letter treated a maid-service business's total charge as taxable beginning October 1, 1987 at both commercial and residential locations. A maid or cook employed by a private household to provide t…
How did Texas tax licensed security services and items used or transferred in providing them, and what later-law alert applies?
The 1987 letter taxed total security-service charges and distinguished consumed from transferred items; a 2019 alert removes consultants and guard-dog companies.
Was a fee for removing a customer's name from mailing and telephone solicitation lists a taxable information service?
No. Customers received no compiled information and solicitors paid nothing for the names, so the service was nontaxable; the provider paid tax on supplies.
When did Texas begin taxing janitorial and custodial services, and how was the tax charged?
October 1, 1987. The provider had to add the appropriate location-based tax rate to its service charge and complete a sales-tax application.
When did Texas tax a city's garbage charge, and what if the service was funded or bundled differently?
From October 1, 1987, a separate city garbage charge was taxable; general-revenue funding created no sale, and a flat bundled utility charge was not separately taxed.
Did a debt collector have to charge Texas sales tax for collection services performed for a 501(c)(3) organization?
No, if the organization supplied an exemption certificate. The letter allowed the collector to accept that certificate instead of tax.
When did Texas consider the benefit of a credit-reporting service received in Texas?
Texas's then-current view treated the benefit as received in Texas when the credit applicant was in Texas and the reporting company's customer also did business there.
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.
Was the described information service taxable before October 1, 1987, and what proof was needed for a seller's refund?
It was not taxable before October 1, 1987. The seller had to show tax was not collected, or that customers were refunded or credited, to support its refund.
How did Texas apply the October 1, 1987 software-tax change to licenses, rentals, and maintenance?
A completed perpetual-license sale escaped tax, but post-October 1 rental amounts were taxable and prepaid maintenance had to be prorated for post-change use.
Did Railroad Commission regulation of an armored-car company's rates prevent Texas sales tax from applying to its customer charges?
No. The total customer charge became taxable October 1, 1987, even though another government agency regulated the carrier's sales price.
Was a separate customer charge for manufacturer-supplied shop drawings used as installation instructions taxable in Texas?
Yes. The shop drawings were a taxable sale of tangible personal property even though they were separately charged installation instructions.
What proof and timing rules applied when a Texas seller refunded sales tax after goods were exported to Mexico?
Owner-held property was presumed stored after 30 days and lost export exemption if used in Texas; refund claims faced a four-year limit, and broker certifications needed an original signature but no n…
Did an out-of-state lessor with equipment in Texas have to collect tax despite having no Texas office or representative?
Not initially, but beginning October 1, 1987 Texas-situated leased property made the lessor a Texas retailer required to collect and remit tax.
Were all charges for uniformed security officers taxable in Texas when roughly 80% of the price covered employee wages and benefits?
Yes. Effective October 1, 1987, the total customer charge was taxable without deducting the provider's labor, materials, or other expenses.
Was an auction purchaser entitled to avoid Texas sales tax by later arranging out-of-state shipment?
No on the corrected facts. Because the auctioneer did not deliver the goods to a common carrier, the purchaser took ownership in Texas and the tax was correctly charged.
Were human telephone-answering and voice-mailbox services taxable, when did the 6% state rate begin, and how did prior-contract relief work?
Voice mailboxes were taxable telecommunications services; traditional answering remained unresolved. The 6% rate began October 1, 1987.
When did Texas begin taxing window washing as a real property service?
October 1, 1987. The Comptroller said window washing would become taxable as a real property service within building and grounds cleaning.
Could new gas-and-electricity study rules be applied retroactively to support equipment, and could Texas require engineer-prepared or reviewed energy audits?
The support-equipment rule was to apply prospectively, requiring split study periods. The letter also defended engineer review for future audits.
Was a labor-only direct-mail preparation and delivery service subject to Texas sales tax?
No. The Comptroller treated the described labor-only mailing service as nontaxable because it was not connected with the sale of taxable items.
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.
How did Texas tax flight suits used in photographs and a flight simulator rented with or without an operator?
The photographer paid tax on suits. For a nontraining simulator, operator rentals taxed components but not rent; customer-only rentals reversed that.
Were purchases by the U.S. Economic Development Administration exempt from Texas sales and use tax?
Yes. Texas treated the agency as an instrumentality of the U.S. Government and exempted its purchases from sales and use tax.
When could buyers of trash containers or compactors give a resale or exemption certificate instead of paying Texas sales tax?
A resale certificate applied when equipment was transferred in a taxable service or bought for resale, lease, or rental; municipal own-use purchases could be exempt.
Was a one-time 50-cent validation fee for a promotional 'twicket' taxable as an admission charge?
Yes on the submitted facts. Texas treated the validation fee as a reduced charge for entry, while offering to reconsider with the ticket and accounting records.
Which restaurant electricity uses qualified for exemption in 1987, and when did energy for immediate-consumption food become taxable?
Only production-equipment electricity qualified after August 3, 1987; energy used to prepare food for immediate consumption became taxable October 1, 1987.
When did a garbage collector billing one month after service first need to include Texas sales tax?
On the November invoice for October service. Garbage collection became taxable October 1, 1987, when the state sales-tax rate also increased to 6%.
Were transportation charges connected with a Texas sale of cement subject to limited sales and use tax?
No. Cement was exempt from limited sales and use tax because it bore cement production tax, and transportation of the exempt item was also exempt.
What Texas sales-tax credit could a gallery claim after a financed painting was repossessed under a recourse arrangement?
The gallery could claim credit only for the principal purchase-price balance still unpaid when the painting was repossessed.
Was Glister Anti-Plaque Chewing Gum taxable in Texas, or did it qualify as a food product?
It was taxable. The letter said chewing gum was candy under Rule 3.293(a)(2), not a food product for sales-tax purposes.
After Texas HB 61, when were freight and local delivery charges on business forms included in taxable sales price?
Customer-paid freight billed directly by the carrier stayed nontaxable, but distributor-billed freight and transportation charges became taxable after October 1, 1987, even if separately stated.
Were standby, idle-time, short-load, and other labor or service charges connected with concrete sales included in the taxable selling price?
Yes. The Comptroller treated standby, idle-time, less-than-load, and concrete-life-extension services as part of the taxable selling price rather than excludable labor.
How did Texas tax a lawn-care provider's total customer charge and its purchases of chemicals, fertilizer, plants, supplies, and equipment?
The total service charge was taxable. Chemicals, fertilizer, and plants transferred to customers could be bought for resale, while provider-purchased supplies and equipment were taxable.
Could an aircraft dealer buy used aircraft for resale, display and test-fly them in Texas, refurbish them, and sell to a qualifying foreign buyer without Texas sales or use tax?
Yes, on the stated facts. The purchase and refurbishing qualified for resale treatment, display and test flights were incidental to resale, and an immediate qualifying nonresident sale was exempt unde…
Which City of Waco landfill, roll-off-container, and disposal-coupon charges were taxable under Texas's 1987 garbage-service rules?
Landfill admission was nontaxable, but roll-off collection and public-site disposal coupons were taxable; convenience stores could buy coupons for resale and then report tax on retail sales.
Could parties make an affixed cogeneration plant taxable personal property merely by stating that characterization in their lease?
No. Contract language could matter when a fixture's status was genuinely doubtful, but this cogeneration plant was obviously an improvement to realty, so its lease was a nontaxable real-property lease…
How did Texas tax landscaping and lawn-care charges and the fertilizer, chemicals, plants, supplies, and equipment used in the service?
Tax applied to the total service charge. Providers could buy chemicals, fertilizer, and plants for resale when transferred to customers, but owed tax on supplies and equipment not transferred.
Did radioactive gold seeds permanently implanted in the body to treat malignant tumors qualify for Texas sales-tax exemption?
Yes. The Comptroller said radioactive gold seeds qualified for exemption when they were permanently implanted in the human body.
Could an auctioneer refund Texas sales tax when a successful bidder returned equipment and received a full refund?
Yes. Although the original auction sale was taxable, § 151.007(c)(2) excluded returned property from sales price when the total charge was refunded by cash or credit, allowing the tax refund.
How much Texas sales tax did a cash-basis lessor report when a Chapter 11 lessee paid only 35% of scheduled equipment rent?
Tax was due only on rental payments actually received under the lessor's cash-basis reporting method. If the remaining rent was later received, tax would then be due on the full amount received.
Did a computer used to track registration numbers and pedigrees for cattle raised for sale qualify for Texas's agricultural sales-tax exemption?
No. A computer used for recordkeeping was not equipment used in the direct production, processing, or marketing of an agricultural product.
How did Texas tax a portrait seller's purchase and resale of slides, photographic enlargements, and a painting?
The seller's pre-sale use of slides made film and processing taxable to her, while unused enlargements could be bought for resale; she collected tax on the full customer package price.
How did Texas treat transportation, mailing, word-processing, and clipping-service charges during the 1987 tax-law transition?
Transportation rules changed October 1, word processing became taxable January 1, 1988, standalone stuffing and stamping was nontaxable, and clipping plus necessary reading was taxable.
When could a Texas machinery auction avoid sales tax for interstate shipment or refund tax after documented export?
Interstate exemption required the auctioneer to deliver immediately to a common carrier and keep the bill of lading; Texas storage made tax due. Proper export proof supported a refund under Rules 3.32…
Were two-way radios and shared repeater services exempt as farm and ranch equipment, and could the Comptroller assess a dealer that relied on earlier agency information?
The radios were taxable because they were not used directly and exclusively in agricultural production, but the Comptroller deleted the existing audit liabilities due to the dealer's reliance on prior…
Were building components and materials used to build or repair a farm barn exempt from Texas sales tax?
No. The Comptroller said barn building components and materials were taxable, so the seller could not accept an exemption certificate for those purchases.
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.
Which typing-service charges were taxable in Texas for a single personalized document, extra copies, and multiple original copies?
A single personalized letter or report was nontaxable, but extra copies for an added charge and multiple printing such as 20 original form letters were taxable.
Could an electric utility bill a customer later for Texas sales tax it failed to charge on earlier electricity bills?
Yes. The Comptroller said a retailer that failed to charge sales tax at the time of sale could later recover the tax from the purchaser.
Could a telephone company collect and remit Dial 976 sales tax for its information-provider sponsors under its own permit?
Yes, if sponsors agreed and the company's records supported audit verification. The later letter allowed sponsors holding permits only for 976 tax to cancel them after October 1987.
Were the listed blood-testing instruments and disposable cartridges taxable in Texas, and when could the seller accept an exemption certificate?
The devices were taxable. The seller could accept a timely Rule 3.285 certificate from a hospital claiming an organizational exemption under Rule 3.322(b) or (c).
Could a Texas auction purchase avoid sales tax when the buyer, rather than the seller, hired a common carrier for immediate shipment to New York?
Yes, if the goods were delivered immediately to the carrier at the auction site and the auctioneer kept the bill of lading. Buyer storage in Texas made the sale taxable.
Were Company A's aircraft sale to a nonresident foreign lessor and the aircraft's leaseback to Company A subject to Texas sales tax?
No. The sale qualified for the nonresident-aircraft exemption, and the leaseback was exempt because Company A would operate the aircraft as a licensed, certificated carrier.
Were construction materials exempt when homeowners hired the contractor but a city paid for housing renovations with federal grant funds?
No. The materials were sold for improvements benefiting individual homeowners, not sold to or used exclusively for the city, so no exempt-entity renovation exemption applied.
How did Texas sales and use tax apply to United States Constitution Coins?
Tax applied when coins or currency were sold above face value or had no face value. For U.S. money with a face value, that amount was subtracted before tax was computed.
Would the company's revised pattern-equipment ownership agreement establish that it sold a pattern to its customer?
Yes, if the agreement was properly executed before the sales invoice and the pattern received the accounting treatment described in the Comptroller's earlier March 16 letter.
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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.