Ezel / Tax Rulings / TX
TX 8709L0832E01 Sales and/or Use Tax (State,Local,MTA)

Who reported Texas sales tax when a city billed residential garbage fees but a private waste company billed commercial accounts?

Short answer: The city reported tax on residential fees it billed and collected; the private waste company reported tax on its commercial accounts and needed its own permit.

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This page answers the general question. Ezel answers yours, under current Texas tax law, with citations.

Disclaimer: This is a taxpayer-specific Texas Comptroller letter about a city and private waste company's separate garbage-collection accounts. The body prints September 15, 1937, which conflicts with accession 8709L0832E01; the issued date is therefore left blank rather than silently corrected. The letter says the opinion may change if the facts differ. Its reporting instructions are historical; verify current law. STAR's caption mentions a homeowner association, but the body does not. 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 city billed and collected residential garbage-collection fees through water bills. The city—not the private waste company—had to report the tax due on those residential charges.

The private waste company separately billed and collected commercial accounts. It had to report the tax on those accounts and obtain its own permit.

The body prints the date as September 15, 1937, which conflicts with the ruling's 8709 accession number. This page leaves the issue date blank rather than changing the official text.

What this means for you

The historical reporting responsibility followed who billed and collected each category of customer charges: the city for residential accounts and the private company for commercial accounts.

Common questions

Who reported tax on residential garbage fees? The city that billed and collected them on water bills.

Who reported tax on commercial accounts? The private waste company that billed and collected those accounts.

Did the private waste company need a permit? Yes, its own permit.

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 15, 1937

Dear ***:

Thank you for your letter concerning the taxability of garbage collec-
tions.

The city is billing and collecting residential fees for garbage collec-
tions on water bills. The tax due on the residential fees billed and
collected by the city should be reported by the city and not *
Waste Systems. Tax due on commercial accounts billed and collected by
* Waste Systems should be reported by * Waste
Systems. **** Waste Systems must have their own permit.

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,
Curt Swenson
Tax Policy Division

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