Ezel / Tax Rulings / TX
TX 8511L0681E12 Sales and/or Use Tax (State,Local,MTA) 1985-11-01

Which truck, trailer, heavy-equipment, and farm-equipment repair labor was taxable after October 2, 1984?

Short answer: Truck and trailer repair labor was nontaxable as motor-vehicle work; heavy-equipment labor was taxable, and farm-equipment labor required an exemption certificate.

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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 1985 Texas Comptroller taxpayer-response letter applying the repair-labor rules effective October 2, 1984 to trucks, trailers, heavy equipment, and farm equipment. STAR warns that H.B. 268 (2011) later required a Comptroller registration number for certain agricultural and timber exemptions beginning January 1, 2012. It expressly says different facts could change the opinion. Current vehicle classification, repair, agricultural, certificate, registration, and sales-tax rules may differ, and STAR documents may no longer represent current policy even when not marked superseded. Letters on STAR can support detrimental reliance only for the taxpayer to whom the letter was directly issued under 34 Tex. Admin. Code Rules 3.1 and 3.10. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice.
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

Effective October 2, 1984, labor to repair, remodel, maintain, or restore tangible personal property was generally taxable. The letter identified an exception for labor to repair, maintain, or restore a motor vehicle.

Truck and trailer repair labor was therefore nontaxable because the letter treated them as motor vehicles. Heavy-equipment repair labor was taxable. Farm-equipment repair labor was nontaxable when the repairer obtained an exemption certificate from the customer.

STAR adds a later-law alert that H.B. 268, enacted in 2011, required registration numbers for certain agricultural and timber exemptions beginning January 1, 2012.

Common questions

Was truck or trailer repair labor taxable? No.

Was heavy-equipment repair labor taxable? Yes.

Was farm-equipment repair labor taxable? Not when supported by the exemption certificate described in the letter.

Should the 1985 certificate procedure be assumed current? No. STAR flags the later registration-number requirement.

Citations and references

  • H.B. 268, 82nd Regular Session (2011) — later agricultural and timber registration requirement described in STAR's alert.

Source

Original ruling text

ALERT: This document may be affected by changes to the Tax Code which was amended by H.B. 268, 82nd Reg. Legislative Session, 2011. The amendment required persons claiming a sales tax exemption for certain agricultural and timber products to apply for and provide a registration number issued by the Comptroller, effective 01/01/2012.

November 1, 1985

Dear ***:

Thank you for your letter of October 26, 1985 concerning the taxability of
welding and repair on trucks, trailers, heavy equipment and farm equipment.

Effective October 2, 1984, labor to repair, remodel, maintain or restore
tangible personal property became taxable, however an exception is labor to
repair, maintain or restore a motor vehicle. Labor to repair trucks, trailers
(motor vehicles) is not taxable. Labor to repair farm equipment is not-taxable
if an exemption certificate is obtained from your customer. Labor to repair
heavy equipment is 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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