Ezel / Tax Rulings / TX
TX 8503L0651C01 Sales and/or Use Tax (State,Local,MTA) 1985-03-01

Which listed truck and equipment repair-labor charges were taxable after the October 2, 1984 change?

Short answer: Repair labor remained exempt for the listed motor vehicles—garbage, dump, flatbed dump, wrecker-lift, and car-hauler trucks, plus dump trailers—but was taxable for dozers, loaders, backhoe/loader tractors, forklifts, graders, and sky lifts.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 letter said that, effective October 2, 1984, labor to repair tangible personal property was taxable, while labor to repair, restore, or maintain a motor vehicle was not.

It classified repair labor on garbage trucks, dump trucks, dump trailers, flatbed dump trucks, wrecker lifts, and car-hauler trucks as exempt.

It classified repair labor on dozers, loaders, tractors with backhoes and loaders, forklifts, graders, and sky lifts as taxable.

These were item-specific classifications under the facts presented. The letter enclosed Rule 3.290 but did not reproduce it.

Common questions

Were all large machines treated as motor vehicles? No. Dozers, loaders, forklifts, graders, and similar equipment were placed in the taxable group. Were dump trailers exempt? Yes in the list. What rule did the letter reference? Sales Tax Rule 3.290.

Citations and references

  • Texas Sales Tax Rule 3.290, referenced but not reproduced in the letter.

Source

Original ruling text

March 1, 1985

Dear ***:

Thank you for your letter of February 26, 1985 requesting clarification
of the taxability of rebuilding various types of equipment.

October 2, 1984 sales tax was imposed on labor to repair tangible personal
property, however, labor to repair, restore or maintain a motor vehicle is
not taxable. Your list and the taxability of repair labor follows:

A. Garbage Trucks - Exempt
B. Dump Trucks - Exempt
C. Dump Trailers - Exempt
D. Doziers - Taxable
E. Loaders - Taxable
F. Flat Bed Dump Trucks - Exempt
G. Tractors with Backhoes & Loaders - Taxable
H. Forklifts - Taxable
I. Graders - Taxable
J. Sky Lifts - Taxable
K. Wrecker Lifts - Exempt
L. Car Hauler Trucks - Exempt

Enclosed is a copy of sales tax rule 3.290 for your reference.

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

If you have any questions or need more information, please call us at
1-800-252-5555 toll free from anywhere in Texas. You may write us at the
Tax Administration Division.

Sincerely,

Tax Administration Division

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