Ezel / Tax Rulings / TX
TX 8701L0790C06 Sales and/or Use Tax (State,Local,MTA) 1987-01-09

Which Texas sales-tax rate applied to utility billing periods that began before or after January 1, 1987?

Short answer: The increased rate applied to billing periods beginning on or after January 1, 1987. A period that began before January 1 used the old rate.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
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 1987 Texas Comptroller letter addresses a historical January 1 rate change for utility billing periods. The broader STAR caption mentions other new taxes and local tax types that the operative body does not separately decide. Utility, billing-cycle, effective-date, allocation, rate, state, local, and MTA tax rules may have changed. STAR documents may no longer represent current policy even when not marked superseded.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 increased rate applied to utility billing periods beginning on or after January 1, 1987.

A billing period that began before January 1 used the old rate. The operative body did not separately discuss the city, county, or other tax categories listed in STAR's broader caption.

What this means for you

The billing period's start date controlled the historical rate. The letter did not prorate a single period between old and new rates.

Common questions

What rate applied to a period beginning January 1 or later? The increased rate.

What rate applied to a period already underway before January 1? The old rate.

Did the body decide separate city or county tax issues? No.

Citations and references

  • The letter cited no numbered statute or Comptroller rule.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller January 9, 1987

Dear ***:

Thank you for your recent letter concerning the new tax rate as it
applies
to utility billing periods.

The increased tax rate applies to billing periods which begin on or after
January 1, 1987. Billing periods which began prior to January 1, will be
subject to the old tax rate.

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 me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Administration Division.

Sincerely,
Julie Pesl
Tax Policy Section
Tax Administration Division

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