Ezel / Tax Rulings / TX
TX 8703L0801D09 Sales and/or Use Tax (State,Local,MTA) 1987-03-12

Was a separately stated environmental charge calculated as a percentage of taxable uniform and shop-supply rentals itself taxable in Texas?

Short answer: Yes. The Comptroller treated the environmental charge as part of the total consideration paid for renting taxable uniforms, shop towels, fender covers, aprons, and similar items.

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 separately stated environmental charge computed as a percentage of charges for renting taxable uniforms, shop towels, fender covers, aprons, and similar items. The letter treats it as part of total rental consideration and cites no statute or rule. Verify current rental, laundry, environmental-fee, bundled-charge, and local-tax rules. STAR documents may no longer represent current policy even when not marked superseded.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

A rental company separately stated an “environmental charge” calculated as a percentage of its charges for uniforms, shop towels, fender covers, aprons, and similar rented items.

The Texas Comptroller said the environmental charge was taxable because it formed part of the total consideration paid for renting taxable items.

What this means for you

Separately stating an add-on fee did not remove it from the taxable rental price. Its percentage-based connection to the taxable rental made it part of the customer's total consideration.

Common questions

Was the environmental charge taxable? Yes.

Did separate invoicing make it nontaxable? No.

Why was it taxable? It was part of the total consideration for renting taxable property.

Citations and references

  • No statute or administrative rule is cited in the letter.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller March 12, 1987

Dear ***;

Thank you for your letter of March 3, 1987 concerning the taxability of
your
"environmental charge."

You indicated that the "environmental charge" is a separately stated
charge
to your customers computed as a percentage of the charges for rental of
uniforms, shoptowels, fender covers, aprons, etc. The charge is taxable
as
it is a part of the total consideration paid for the rental of taxable
items.

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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