Ezel / Tax Rulings / TX
TX 8709L0830A14 Sales and/or Use Tax (State,Local,MTA) 1987-09-02

When did a garbage collector billing one month after service first need to include Texas sales tax?

Short answer: On the November invoice for October service. Garbage collection became taxable October 1, 1987, when the state sales-tax rate also increased to 6%.

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 the transition to taxing garbage collection. It says the opinion may change if the facts differ. Its 6% rate and October 1, 1987 effective date are historical; verify current rates, sourcing, and waste-service 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 STAR documents may no longer represent current policy even when not marked superseded.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

Texas garbage-collection services became taxable October 1, 1987, the same day the state sales-tax rate increased to 6%.

The requester performed service during one month and billed it the next. The Comptroller said tax should begin with October services. Because those services would be billed in November, the November invoice was the first invoice that should include sales tax.

What this means for you

For this historical transition, the service month controlled when the newly taxable treatment began. Later billing did not move October service outside the tax.

Common questions

When did garbage collection become taxable? October 1, 1987.

What was the state rate stated in the letter? 6% beginning the same day.

If October service was billed in November, which invoice first showed tax? November's invoice.

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

September 2, 1987

Dear *:

Thank you for your recent letter concerning the sales tax on garbage
collection.

The state sales tax rate increases to 6 percent on October 1, 1987, the
same
date that garbage collection services become taxable. You indicated in
our
telephone conversation yesterday that you have received the memorandum to
Texas Municipal League member cities which outlines general sales tax
guidelines.

You will begin charging sales tax for services performed in October. If,
as
you indicated, October services are billed in November, then November's
invoice will be the first to include sales tax.

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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