Ezel / Tax Rulings / TX
TX 8609L0758D09 Sales and/or Use Tax (State,Local,MTA) 1986-09-24

Could fishing nets be purchased tax-free as component parts of a commercial fishing boat?

Short answer: Yes, under the later letter, when the boat exceeded eight tons displacement and was used commercially. The customer had to provide an exemption certificate; an earlier letter in the same record had denied any exemption.

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This page answers the general question as of 1986. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1986
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 STAR record contains a September 24, 1986 letter allowing an exemption on stated facts and an earlier September 5 letter denying any fishing-net exemption. This summary treats the later letter as the operative answer within the combined record. 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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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.
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

This STAR record contains two letters with different conclusions. On September 5, 1986, the Comptroller said no exemption was available for fishing nets bought by commercial fishermen. On September 24, the Comptroller wrote again and treated a fishing net as a component part of the fishing boat.

The later letter allowed the net to be purchased tax-free when the boat exceeded eight tons displacement and was used in a commercial enterprise. The customer had to give the seller a completed exemption certificate. This summary follows that later answer while preserving the earlier denial below.

Common questions

Did the first letter allow an exemption? No. The September 5 letter told the seller to collect tax.

What did the later letter decide? A fishing net could qualify as a tax-free component part of the fishing boat.

What vessel conditions did the later letter state? The boat had to exceed eight tons displacement and be used in a commercial enterprise.

What documentation did the customer need? A completed exemption certificate.

Citations and references

  • The letters cited no numbered statute or Comptroller rule.

Source

Original ruling text

September 24, 1986

Dear ***:

On September 5, 1986, I wrote to you concerning tax on fishing nets.

A fishing net would be considered a component part of the fishing boat
and may be purchased tax-free if the boat is in excess of eight tons
displacement and is used in a commercial enterprise. Your customer should
provide you with a completed exemption certificate in lieu of tax.

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

Please feel free to contact us if you have additional questions. You may
write us, call toll free 1-800-252-5555 from anywhere in Texas or
telephone 512/463-4600.

Sincerely,

Sales Tax Policy
Tax Administration Division

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller

September 5, 1986

Dear ***:

Thank you for your letter of August 25, 1986, concerning tax on fishing
nets purchased for use on fishing boats.

There is no exemption available for fishing nets purchased by commercial
fisherman. You should collect tax on nets sold for use on fishing boats.

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. The regular number is
512/463-4600. You may write us at the Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division

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