How did Texas tax separately stated hospital charges for patient televisions, guest cots, and telephones?

Plain-English summary

For fees separately stated from the hospital-room charge:

• Television use: taxable as a rental; the hospital could issue a resale certificate when acquiring the sets.
• Guest cots: the patient charge was not taxable, but the hospital paid tax when purchasing the cots.
• Telephones: the patient charge was taxable. The letter says telephone charges became taxable January 1, 1984 after the AT&T breakup.

The hospital was put on notice for the television and telephone treatment effective October 1, 1984. The letter also apologized for confusion caused by a previous letter.

What this means for you

Separately stated hospital amenity charges did not all receive the same treatment; the type of item controlled.

Common questions

Q: Was a patient TV fee taxable? A: Yes, as a rental.

Q: Was a guest-cot fee taxable? A: No, though the hospital paid tax on the cot purchase.

Q: Was a telephone fee taxable? A: Yes.

Citations and references

The letter does not cite a statute or rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8409L0608A04

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

BOB BULLOCK
Comptroller September 12, 1984

Dear *:

Thank you for your recent letter concerning the taxability of fees
charged to patients
for the use of televisions, cots for guests, and telephones.

I will list the fees with my answer immediately following. The answers
are
predicated on the fact that the fees are not included in the cost of the
room but are
separately stated to the patients:

Televisions - This fee is considered a rental and sales tax is due on the
charge to
the patients. This has always been true and you are hereby put on notice
of such,
effective October 1, 1984. You should issue a resale certificate when
purchasing
or renting the television sets from your supplier.

Cots for Guests - The charge for cots is not subject to tax. You must
pay tax at
the time of their purchase.

Telephones - Effective January 1, 1984, due to the break-up of AT&T, the
charge
for the telephones become taxable. Again, you are hereby put on notice
of such,
effective October 1, 1984.

We apologize for the confusion caused by our previous letter.

This opinion is based upon the facts you presented. If there are
additional or
different facts, this opinion may change.

Please feel free to contact me if you have additional questions. You may
write me,
call toll free 1-800-252-5555 from anywhere in Texas or phone
512/475-1931.

Sincerely,
F. Wayne McDonald
Tax Administration Division