Ezel / Tax Rulings / TX
TX 8612L0785A07 Sales and/or Use Tax (State,Local,MTA) 1986-12-11

Was a sign company's charge for hanging a tenant-owned sign on the sign company's pole subject to Texas sales tax?

Short answer: No. Under the stated facts, Texas did not require the sign company to charge tax on its fee for hanging the customer's sign on the company's pole.

Apply this to your situation

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 1986 Texas Comptroller letter addresses only a charge for hanging a customer-owned sign on a pole owned by the sign company and located on the customer's landlord's property. The STAR caption incorrectly implies the tenant owned the pole. Sign, installation, rental, real-property, repair, maintenance, and local-tax rules may have changed or differ under other ownership facts. STAR documents may no longer represent current policy even when not marked superseded. Identities 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 Texas Comptroller said the sign company did not have to charge sales tax on its fee for hanging the customer's sign on the company's pole.

The customer owned the sign, the sign company owned the pole, and the pole stood on the customer's landlord's property. STAR's caption reverses the pole ownership, so the page follows the ruling body.

What this means for you

The result is limited to the stated ownership and hanging arrangement. The letter did not discuss sale or rental of the sign, pole rental, fabrication, repair, or other sign services.

Common questions

Was the hanging fee taxable? No.

Who owned the sign? The customer.

Who owned the pole? The sign company.

Citations and references

  • The letter cited no numbered statute or Comptroller rule.

Source

Original ruling text

December 11, 1986

Dear ***:

Thank you for your recent letter which is restated with response below.

I own a sign which I have connected to a pole owned by COMPANY A.
The pole is on my landlord's property. COMPANY A has been charging
me tax on the rental for being connected to this pole. I've spoken
with the CITY A and CITY B offices of the Comptroller's office
and both say this is nontaxable. Would you please send me a letter
stating this so I may send a copy to COMPANY A. You may send it
to my address at the top of this page.

RESPONSE: We will not require the sign company to charge tax on their
charge to you for hanging your sign on their pole.

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 1-800-252-5555 toll free from anywhere in Texas, or
telephone 512/463-4600.

Sincerely,

Tax Policy
Tax Administration Division

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