Were standby, idle-time, short-load, and other labor or service charges connected with concrete sales included in the taxable selling price?

Plain-English summary

The August 28 letter said standby time, idle time, less-than-a-load charges, and similar services connected with selling concrete were part of its taxable selling price.

An earlier August 6 letter addressed labor or services intended to prolong concrete's usefulness. The requester had not shown that the work was installation—placing the concrete in position without changing its form—or remodeling under Rule 3.292. Section 151.007(a)(2) instead included labor or services connected with the sale of taxable items in the taxable selling price.

What this means for you

The historical letters looked at the charge's connection to the concrete sale. Renaming connected work as waiting time, standby time, or labor did not remove it from the sales price on the facts provided.

Common questions

Were standby and idle-time charges taxable? Yes, as part of the concrete's selling price.

What about less-than-a-load charges? They received the same treatment.

Did the requester establish nontaxable installation or remodeling? No; the facts did not show that classification.

Citations and references

• Texas Sales and Use Tax Law § 151.007(a)(2) — labor or services connected with a taxable sale.
• Rule 3.292 — cited for definitions of installation and remodeling.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8708L0833G07

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller August 28, 1987

Dear *****:

Thank you for supplying additional information about the charges
associated
with prolonging the useful life of concrete.

In 1979, the Comptroller's Office wrote a letter to the president of the
Texas Aggregates and Concrete Association explaining our position on
charges
for "standby time", "idle time", "less than a load", etc. These charges
are
all considered a part of the taxable selling price of the concrete.

The information you have given indicates that the services performed are
connected to the sale of the concrete and are not excludable from the
selling
price, for sales tax purposes.

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 Policy Division.

Sincerely,
Julie Pesl
Tax Policy Division

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
BOB BULLOCK AUSTIN, 78774
Comptroller

August 6, 1987

Dear *****:

Thank you for your letter of July 13, 1987 concerning the taxability of
charges associated with prolonging the useful life of concrete.

It is not clear from the information provided in your letter what exactly
is
being done to the concrete to prolong its usefulness. You state that the
labor is not taxable because it "should be categorized as installation,
remodeling or alterations of the product."

I have enclosed Rule 3.292 which defines installation and remodeling.
Again,
it is not clear from the facts you presented that the concrete is placed
in
position without changing its form (installation) or remodeled.

Section 151.007 (a)(2) includes labor or services connected with the sale
of
taxable items as a part of the taxable selling price. Based on the
information provided, charges for labor or services to prolong the
usefulness
of the concrete are taxable.

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 Policy Division.

Sincerely,
Julie Pesl
Tax Policy Division