Ezel / Tax Rulings / TX
TX 8501L0612E12 Sales and/or Use Tax (State,Local,MTA) 1985-01-31

Was Gulf Salt Dome Ceiling Fluid exempt from sales and use tax when it met the Tax Code definition of diesel fuel?

Short answer: Yes, if the product qualified as diesel under Tax Code Section 153.001(4). It still had to be accounted for on the distributor's monthly diesel-fuel tax report.

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This page answers the general question as of 1985. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1985
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The product called Gulf Salt Dome Ceiling Fluid was exempt from sales and use tax if it met the definition of diesel in Tax Code Section 153.001(4).

Even when exempt from sales and use tax, the product had to be included on the distributor's monthly diesel-fuel tax report because it was diesel fuel.

The letter does not reproduce the statutory definition or make an independent factual finding that the product satisfied it.

Common questions

Was the product unconditionally exempt? No; it had to meet the statutory diesel definition. Did the exemption eliminate fuel-tax reporting? No. Did the letter reproduce the definition? No.

Citations and references

  • Texas Tax Code § 153.001(4), cited for the diesel definition.

Source

Original ruling text

January 31, 1985

Dear ***:

If your diesel fuel product referred to as "Gulf Salt Dome Ceiling
Fluid" is diesel as defined by section 153.001(4) of the Tax Code, then
it is exempt from the sales and use tax.

Of course, being diesel fuel, it should be accounted for on your diesel
fuel distributor's monthly tax report.

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

Any further correspondence concerning this matter should be directed to
the attention of the Tax Administration Division.

Very truly yours,

Tax Policy Section
Tax Administration Division

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