Ezel / Tax Rulings / TX
TX 8709L0833A08 Sales and/or Use Tax (State,Local,MTA) 1987-09-25

Did Texas's October 1987 expansion of taxable services make inspections of building components taxable?

Short answer: No. The Comptroller said real-estate inspections of structural components such as plumbing, wiring, HVAC units, and roofs would not be taxable under the new law changes.

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 real-estate inspections as service-tax changes took effect. It says the opinion may change if the facts differ. The body addresses inspections of listed building components, not the tanks, elevators, reinspection charges, or repair work named in STAR's broader caption. Its answer is historical; verify current law. STAR documents may no longer represent current policy even when not marked superseded.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 service-tax changes were scheduled to take effect October 1, 1987. The Comptroller said real-estate inspections would not become taxable under those changes.

The letter described the service as checking a building's structural components, including plumbing, electrical wiring, air-conditioning and heating units, and roofs.

What this means for you

The historical answer was limited to inspection work. The body does not decide repair, remodeling, restoration, tanks, elevators, or a separate reinspection charge.

Common questions

Were real-estate inspections taxable under the 1987 changes? No.

What inspection work did the letter identify? Checking structural components such as plumbing, wiring, HVAC units, and roofs.

Did the body analyze repair or remodeling services? 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 25, 1987

Dear **:

Thank you for your letter of September 18, 1987, concerning the
taxability of
real estate inspections under the services which will become taxable
October
1, 1987.

Real estate inspections, the checking of structural components of a
building,
including plumbing, electrical wiring, air-conditioning and heating
units,
roofs, etc., will not be taxable under the new tax law changes.

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,
Eddie C. Washington
Tax Policy Division

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