Ezel / Tax Rulings / TX
TX 8512L0687F13 Sales and/or Use Tax (State,Local,MTA) 1985-12-16

Were balloon drops, balloon releases, centerpieces, decorations, and their installation taxable in Texas?

Short answer: The decorations' selling price was taxable because customers kept them, but a separately stated charge to install the decorations was not taxable.

Apply this to your situation

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 based on a seller placing party decorations and then leaving all items with the customer. The seller did not remain to release balloons or return to retrieve property, and the letter separately addresses installation. It expressly says different facts could change the opinion. Current decoration, rental, event-service, installation, bundling, and sales-tax rules may differ, and STAR documents may no longer represent current policy even when not marked superseded.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

The seller provided party decorations, centerpieces, balloon drops, and balloon releases, put the decorations in place, and then left. The seller did not remain to release the balloons, and the customer kept all decorations.

The Comptroller required sales tax on the decorations' selling price. A separately stated installation charge was not taxable.

Common questions

Were the balloon drops and other decorations taxable? Yes.

Was a separately stated installation charge taxable? No.

Did the seller retain or retrieve the decorations? No. The customer owned them after the sale.

Citations and references

The reproduced letter cites no numbered statute or rule.

Source

Original ruling text

December 16, 1985

Dear ***:

This letter is to confirm our telephone conversation today concerning the
sale of balloon drops and releases.

You stated that you sell party decorations, centerpieces and balloon
drops and releases to your customers. You put the decorations in place
and then leave. You do not actually stay at the party to release the
balloons. All decorations are the property of your customer; you do not
return to pick up anything.

You should collect sales tax from your customer based on the selling
price of the balloon drops, and releases, and other decorations. A
separately stated installation charge is not subject to the tax.

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 ud at the
Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division

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