Ezel / Tax Rulings / TX
TX 8702L0797D09 Sales and/or Use Tax (State,Local,MTA) 1987-02-13

When was a television-repair estimate fee or deposit subject to Texas sales tax?

Short answer: An estimate charge was not taxable if no repair was done. If the fee or deposit was applied to or added to a completed repair bill, it became taxable as part of the total repair charge.

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 television-repair estimates and deposits under the stated refund and billing facts. Repair, diagnostic, estimate, deposit, separately stated charge, refund, and local-tax rules may have changed or differ for other property or service arrangements. STAR documents may no longer represent current policy even when not marked superseded.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 an estimate charge was not taxable when no television repair was performed.

If the estimate fee or deposit was not refunded and instead paid part of the repair bill, it became taxable as part of the total repair charge. The same result applied if the fee was charged in addition to the repair bill.

What this means for you

The fee's final use controlled. A stand-alone estimate after the customer declined repair remained nontaxable; a fee connected financially to a completed repair entered the taxable repair price.

Common questions

Was an estimate taxable when the customer declined repair? No.

Was a deposit applied to the repair bill taxable? Yes.

Was an estimate fee charged on top of a completed repair taxable? Yes.

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 February 13, 1987

Dear **:

Thank you for your letter of January 17, 1987 concerning the taxability
of
estimate fees and deposits related to television repairs.

Charges for estimates are not taxable unless a repair is done. If the
deposit or estimate fee is not refunded to the customer but is used
instead
to pay part of the repair bill, or is paid in addition to the repair
bill,
then the estimate or deposit is taxable as a part of the total charge to
repair the television.

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 Administration Division

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