Did the October 2, 1984 sales-tax changes make the two-step Crimp-Kote pipe process taxable?

Plain-English summary

The May 1985 letter said the Crimp-Kote process was taxable after the October 2, 1984 sales-tax changes. It stated that services to remodel tangible personal property became taxable on that date, so the total charge for both steps of the process was taxable.

That answer replaced the treatment in an attached July 1980 Comptroller letter, which had said charges for the same described process were not subject to Texas sales tax. The two letters therefore document a change in treatment tied to the intervening law change, not two simultaneous rules.

The 1985 response also enclosed a sales-tax permit application packet. Because the answer is historical and expressly tied to a 1984 change, it should not be assumed to state current law without checking later authority.

Common questions

Was only one step taxable? No. The 1985 letter said the total charge for both steps was taxable. Why did the attached 1980 letter say otherwise? It predated the October 2, 1984 change identified in the later response. Did the letter describe the process's technical steps? No; it referenced an enclosed fact sheet that is not reproduced.

Citations and references

The reproduced letters cite no numbered 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/8505L0641D09

Original ruling text

May 1, 1985

Dear ***:

Thank you for your letter of April 12, 1985, concerning the effect of
the October 2, 1984 changes in the sales tax law on your "Crimp-Kote"
process.

The process is taxable. Effective October 2, 1984, the services to remodel
tangible personal property became taxable. The total charge for the process
(both steps) is taxable.

I have enclosed an application packet for your convenience so that you
may apply for a sales tax permit for **.

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

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

July 18, 1980

Dear ***:

Thank you for the opportunity to answer your recent letter concerning
the "Crimp-Kote" process.

From the information provided in your correspondence it has been determined
that the charges made for the "Crimp-Kote" process are not subject to the
Texas Sales Tax.

I trust this answers your inquiry and if we can be of further-assistance,
please don't hesitate to contact me.

Please direct your correspondence in this matter to the attention of the
Sales Tax Division, or call our toll-free tax information number
1/800/252-5555.

Yours very truly,

Sales Tax Division

This opinion is rendered based upon the facts as presented. Other facts,
though similar to those presented, may yield different results.

July 10, 1980

Comptroller of Public Accounts
Capitol Station
Austin, Texas 78774

Re: Sales Tax Status "Crimp-Kote"

Gentlemen:

Enclosed find copy of Fact Sheet describing the process of "Crimp-Kote" which
we recently acquired. It is the desire of **, to have a written
interpretation given Us as to the status of this process with regard to Texas
Sales and Use Tax.

As you will note the process involves two steps. Our present accounting system
provides a separate accounting for the price charged for each step in the
"Crimp-Kote" process.

If I can be of any further assistance regarding this matter, please direct
your inquiry to me at ***.

Very truly your,