Ezel / Tax Rulings / TX
TX 8504L0634A05 Sales and/or Use Tax (State,Local,MTA) 1985-04-09

Were charges to haul fresh water to frac tanks at a customer's well location taxable?

Short answer: No under the stated facts. Section 151.315 exempted the sale of water, and the letter said charges to transport nontaxable items were not taxable.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 request concerned fresh water hauled to frac tanks at a customer's well location. Section 151.315 exempted the sale of water, and the Comptroller said charges to transport nontaxable items were not taxable.

Accordingly, the described fresh-water hauling charge was not taxable. This short letter does not address water mixed with chemicals, title-passage terms, or charges for delivering taxable items.

Common questions

Was the fresh water itself taxable? No under Section 151.315 as cited in the letter. Was its transportation charge taxable? No under the stated facts. Did this letter decide hauling of chemically treated water? No.

Citations and references

  • Texas Sales Tax Statute § 151.315, cited in the reproduced letter as exempting the sale of water.

Source

Original ruling text

April 9, 1985

Dear ***:

Thank you for your letter of April 5, 1985, concerning the taxability of
fresh water hauled to frac tanks on your customer's well location.

Section 151.315 of the Sales Tax Statute (copy enclosed), exempts the
sale of water from taxation. Charges for transporting non-taxable
items are not taxable.

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 Policy Section
Tax Administration Division

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