Ezel / Tax Rulings / TX
TX 8709L0829E05 Sales and/or Use Tax (State,Local,MTA) 1987-09-02

Were transportation charges connected with a Texas sale of cement subject to limited sales and use tax?

Short answer: No. Cement was exempt from limited sales and use tax because it bore cement production tax, and transportation of the exempt item was also exempt.

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 is a taxpayer-specific September 1987 Texas Comptroller letter about transportation charges on cement. It says the opinion may change if the facts differ. Its interaction between cement production tax and limited sales and use tax is historical; verify current product and delivery-charge treatment. STAR documents may no longer represent current policy even when not marked superseded.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

Cement was subject to cement production tax and therefore exempt from limited sales and use tax under the letter. Transportation charges connected with selling that exempt cement were also exempt.

What this means for you

The historical letter followed the tax status of the item being transported. Because cement was exempt from the limited sales and use tax, its related transportation charge received the same treatment.

Common questions

Was cement subject to limited sales and use tax? No under the letter.

Why? It was taxed under the cement production tax.

Were the connected transportation charges taxable? No.

Citations and references

  • No statute or rule number is cited in the ruling text.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller September 2, 1987

Dear ***:

Thank you for your letter of August 6, 1987 concerning the taxability of
transportation charges connected to the sale of cement.

Cement is taxed under the cement production tax and is therefore exempt
from
limited sales and use tax. Transportation charges for exempt items are
also
exempt.

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

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