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.
No Texas rulings match these filters
Try a different search term or clear the filters.
How did Texas tax parking fees, separately stated towing and returned-check charges, government parking, consulates, supplies, and operator reporting?
Parking fees were taxable, but separately stated towing and returned-check charges were not. The operator or owner reported tax based on who received receipts, government employees were not exempt, an…
Were railroad crossties shipped into Texas exempt as supplies essential to operating locomotives and trains?
Yes. The Comptroller treated railroad ties as supplies essential to train operations under Section 151.331, so the seller did not collect Texas use tax when the purchaser issued an exemption certifica…
Were entry fees to professional golf tournaments and charity pro-am events taxable when charged by a nonprofit organization?
No. Entry fees to both professional golf tournaments and charity pro-am events were not subject to state sales tax when charged by the nonprofit organization, which had to keep written proof of its IR…
How did Texas's October 2, 1984 amusement tax apply to private health-club memberships, dues, initiation fees, and existing contracts?
Private health-club membership fees and monthly dues became taxable October 2, 1984. Preexisting contracts remained exempt for their term, and pre-October 2 payments were exempt even for later-startin…
How did Texas's October 2, 1984 amusement tax apply to private figure-salon memberships, dues, initiation fees, and existing contracts?
Private figure-salon membership fees and monthly dues became taxable October 2, 1984. Preexisting contracts remained exempt for their term, and pre-October 2 payments were exempt even for later-starti…
Were admissions to live-entertainment performances taxable in Texas, and did nonprofit amusement-service sales qualify for exemption?
Live-entertainment admissions became taxable amusement services on October 2, 1984. Sales of amusement services by nonprofit organizations were exempt.
Were a cochlear implant and its external transmitter, microphone assembly, and signal processor exempt from Texas sales tax?
Yes. The internal receiver and the external transmitter, microphone assembly, and signal processor were exempt as a hearing aid under Section 151.313(4).
Were stationary billboard rentals and custom-painted logos or lettering on vehicles and equipment taxable in Texas?
Stationary billboard rentals were not taxable because they were real-property rentals. Painting logos or lettering on trucks, cars, and equipment was taxable as printing or imprinting under Section 15…
How did Texas's October 2, 1984 change tax carpet, rug, drapery, and garment cleaning or repair charges?
Charges to clean or repair carpet, drapery, and garments became taxable October 2, 1984, including rug and carpet cleaning at the customer's premises or the provider's plant. One-time customer logo ch…
Were ballet-performance admissions and ballet-class tuition taxable when sold by the tax-exempt organization described?
Neither charge was taxable. The exempt organization qualified for an exemption on ballet-performance admissions, and ballet classes were not regarded as a taxable service.
How much Texas tax was due on impounded-vehicle storage fees when an unpaid vehicle was sold at public auction?
Storage fees were taxable. If auction proceeds covered them, the full storage tax was reported; if net proceeds were short, tax was paid proportionately. No tax was due when there was no bid or the st…
How did Texas tax separately stated hospital charges for patient televisions, guest cots, and telephones?
A separately stated patient television fee was a taxable rental, and the hospital could give its supplier a resale certificate. A guest-cot charge was not taxable, but the hospital paid tax when buyin…
Were rentals of Texas self-storage facilities taxable after the 1984 tax changes?
No. The Comptroller said self-storage facility rentals were not a taxable service and were not affected by the recent tax changes.
When did Texas begin taxing initiation fees and monthly dues charged by privately owned racquetball clubs, and how were earlier contracts treated?
The letter says initiation fees and monthly dues for privately owned racquetball clubs became taxable amusement-service receipts on October 2, 1984, subject to 4.125% state tax plus applicable city an…
Which truck and trailer repair, accessory-installation, remodeling, and freight charges were taxable under this 1984 Texas guidance?
Ordinary repair labor on highway-registered trucks and trailers was not taxable. Separately stated accessory-installation labor was also untaxed, but labor included in an accessory's sales price was t…
When were bowling tournament receipts and newly added league teams protected from Texas sales tax by contracts signed before October 2, 1984?
Bowling receipts under a tournament contract signed before October 2, 1984 were exempt if the contract specified the price, date, location, and similar terms. Teams added to a league after October 1 r…
How did Texas apply the October 2, 1984 amusement-service tax to fitness-center memberships, including medically prescribed memberships and older contracts?
Medically prescribed memberships were excluded from taxable amusement services, but the written prescriptions had to be kept for audit. Contracts or membership periods beginning before October 2, 1984…
Who had to collect Texas state and local sales tax on recreational-event admissions beginning October 2, 1984?
Admissions to recreational events became subject to state and local sales tax on October 2, 1984. A nonprofit organization with tax-exempt status did not have to collect the tax, but a non-nonprofit p…
Was a portable generator mounted on a custom towable platform treated as a motor vehicle or as taxable movable specialized equipment?
It was taxable movable specialized equipment. Tax Administration concluded that the custom towable platform was only a component of the generator unit. The platform's design and construction to the se…
Did Texas tax validated free restaurant parking, separately charged parking, or the services of strolling troubadours?
Validated free parking for restaurant customers was not taxable. A separate parking charge became subject to sales tax on October 2, 1984. The restaurants were not required to collect or report tax on…
Were green fees and annual passes charged by a city-owned municipal golf course subject to Texas sales tax?
No. The Comptroller said no tax was due on the municipal golf course's green fees or annual passes because the city providing the amusement service was an exempt municipality.
Which professional and personal services did Texas say would or would not be taxable under the October 2, 1984 law changes?
Doctor, accounting, and legal fees were not taxable under the October 2, 1984 changes. Group 721 laundry, cleaning, and garment services, plus massage parlors, escort services, and Turkish baths, were…
How did Texas tax aircraft repair labor and parts under lump-sum versus separately stated repair bills?
Labor by certificated aircraft mechanics or repair stations for repairing, maintaining, restoring, or remodeling aircraft, parts, and accessories was not taxable. A lump-sum repairer was the consumer …
How did Texas instruct federal lump-sum contractors to handle the October 2 tax change while an Attorney General opinion was pending?
The change applied only to lump-sum federal contractors; separated contracts kept their existing sales-tax exemption. Permit holders gave suppliers resale certificates and reported the tax, while cont…
When were repairs to medical and therapeutic equipment exempt from Texas sales tax, and when was a prescription required?
Repairs to wheelchairs, walkers, and IPPB machines were exempt because of the item's nature. Repairs to listed therapeutic equipment were exempt when an individual used the item under a licensed pract…
Did Texas tax admissions to carnivals, fairs, amusement parks, and rides beginning October 2, 1984?
Yes. State and local tax applied beginning October 2, 1984, except for events sponsored by a nonprofit or charitable group or under governmental sponsorship. Providers needed a sales-tax permit and co…
Did Texas tax horse-racetrack and horse-show admission fees beginning October 2, 1984?
Yes. State and local sales tax applied beginning October 2, 1984, unless the event was sponsored by a nonprofit or charitable group or under governmental sponsorship. Providers needed a sales-tax perm…
Did Texas tax motion-picture-theater tickets beginning October 2, 1984?
Yes. Motion-picture-theater tickets came under state and local sales taxes beginning October 2, 1984. Theater operators could report and pay admission tax with other sales taxes they already handled, …
Did Texas tax boxing and wrestling admission fees beginning October 2, 1984?
Yes. State and local tax applied beginning October 2, 1984. Events sponsored by nonprofit or charitable organizations or under a government entity's sponsorship were not taxed. Providers needed a sale…
Did Texas tax tennis admissions, court fees, and green fees beginning October 2, 1984?
Yes. State and local sales taxes applied beginning October 2, except to events sponsored by nonprofit or charitable groups or under governmental sponsorship. Providers needed sales-tax permits and cou…
How long did Texas protect pre-October 2, 1984 fitness-club membership contracts, and what happened when annual contracts renewed?
Monthly-dues contracts with an initial fee that were entered into and effective before October 2, 1984 were untaxed only through September 30, 1987; after that, all fees were taxable regardless of con…
Which skating-rink admissions, rentals, facility charges, and lesson fees did Texas treat as taxable in Letter Ruling 8408L0590A01?
Public-session admission for skaters, admission for non-skaters, skate rentals, and a license fee for exclusive use of the rink were taxable. Group lessons taught by salaried rink employees and privat…
Were fees for instructional Jazzercise classes taxable in Texas, and did ownership of the facility matter?
No. The Comptroller treated instructional Jazzercise activities as a nontaxable service, so class fees were not subject to tax. The result did not change based on who owned or operated the facility wh…
Were movie or video club membership fees subject to Texas state sales tax under Letter Ruling 8408L0589D14?
No. The Comptroller said movie or video club membership fees were not subject to Texas state sales tax. The short 1984 letter did not address charges for renting or selling videotapes, local taxes, or…
Did a Texas carpet-cleaning business have to collect state and local sales tax on its cleaning services beginning October 2, 1984?
Yes. The Comptroller told the carpet cleaner that its services would become subject to state and local sales tax beginning October 2. The business had to begin collecting the tax on that date, obtain …
Which vehicle, trailer, boat, wrecker, and transportation charges did Texas treat as taxable in Letter Ruling 8408L0586B11?
Fees to store, park, or garage a motor vehicle—including a trailer—were taxable regardless of owner consent. A single charge for storing a boat on a trailer was not taxable. Wrecker and transportation…
Did Texas apply motor vehicle tax or limited sales tax to concrete pumping trucks, trailers, pumps, and booms?
A truck with a concrete pump attached was subject to motor vehicle tax. A trailer built specifically to pump concrete and not mounted on a motor vehicle was movable specialized equipment subject to li…
How did Texas tax off-road vehicles and their trade-ins after the September 1, 1983 law change?
Off-road vehicles not designed for public highways became subject to limited sales tax instead of motor vehicle tax on September 1, 1983, with applicable city or MTA tax. An off-road trade-in could re…
Did Texas apply sales tax or motor vehicle tax to vehicles designed for off-road use after September 1, 1983?
Vehicles not designed for public-highway use became subject to limited sales and use tax instead of motor vehicle sales tax on September 1, 1983. If an off-road vehicle was nevertheless titled, the ti…
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…
Was providing advertising on a sign trailer a taxable rental, and how were the trailer and sign taxed when bought or sold?
Providing advertising on a trailer was a service, not a rental, because customers lacked exclusive use or control; the provider collected neither rental-receipts tax nor limited sales tax on the servi…
How did Texas historically classify mobile homes and trailers for tax before and after July 1, 1971?
Before April 1, 1970, mobile homes were taxed as motor vehicles. From April 1, 1970 through June 30, 1971, units wider than eight feet or longer than 36 feet were taxed under the Limited Sales, Excise…
Was a manufacturer-built well service unit subject to Texas motor vehicle tax or limited sales tax?
The described well service unit was not subject to motor vehicle sales and use tax. Because the manufacturer built it entirely for a specialized function and it was not designed to carry a divisible h…
Were mobile lighting systems and air compressors motor vehicles or movable specialized equipment for Texas tax?
They were not motor vehicles. The brochures showed units designed and built for specialized functions and not designed to carry divisible highway loads, so Texas treated them as movable specialized eq…
Could a company's volunteer fire department qualify for Texas motor vehicle and sales tax exemptions?
Yes if the department was an identifiable entity within the company and employees received no additional compensation for firefighting. Vehicles it purchased for firefighting or emergency medical serv…
Was a drilling rig permanently mounted on a truck taxable as a motor vehicle or movable specialized equipment?
The truck-mounted rig was a motor vehicle. A truck remained subject to motor vehicle tax despite attached drilling accessories or limited highway use. By contrast, a mobile drilling rig constructed 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…
How did Texas distinguish a self-propelled specialized unit from specialized equipment mounted on a truck?
A purpose-built self-propelled unit performing a specialized function without transporting separate property or passengers was movable specialized equipment subject to limited sales tax. But a vehicle…
Who had to collect and report Texas sales tax when a city bought garbage-collection service from a private company and provided it to residents?
The city. It was providing the service to residents and buying the private collector's service for resale, so it also had to obtain a sales tax permit.
Who reported Texas sales tax when a city billed residential garbage fees but a private waste company billed commercial accounts?
The city reported tax on residential fees it billed and collected; the private waste company reported tax on its commercial accounts and needed its own permit.
Browse Texas rulings by topic
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.