Ezel / Tax Rulings / TX
TX 8710L0834B13 Sales and/or Use Tax (State,Local,MTA) 1987-10-08

Were sales of cement kiln dust subject to Texas limited sales tax even though cement production tax was not paid on the kiln dust?

Short answer: Yes. Sales tax applied unless the buyer provided a properly completed exemption, resale, or direct-payment exemption certificate.

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 October 1987 Texas Comptroller letter about sales of cement kiln dust. It says the opinion may change if the facts differ. Its distinction between limited sales tax and cement production tax is historical; verify current tax law and certificate requirements. STAR documents may no longer represent current policy even when not marked superseded.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

The Comptroller said sales of cement kiln dust were subject to limited sales tax. The fact that cement production tax was paid on taxable cement but not on cement kiln dust did not exempt sales of the dust.

The seller had to collect sales tax on every sale unless the purchaser gave it a properly completed exemption certificate, resale certificate, or direct-payment exemption certificate.

What this means for you

Under the historical letter, cement kiln dust remained taxable tangible property even though it was treated differently from taxable cement for production-tax purposes. A purchaser's valid certificate, not the absence of cement production tax, was the route to a tax-free sale.

Common questions

Was cement kiln dust subject to limited sales tax? Yes.

Was cement production tax paid on the kiln dust? No according to the letter.

When could the seller avoid collecting sales tax? When the buyer supplied a properly completed exemption, resale, or direct-payment exemption certificate.

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

October 8, 1987

Dear ***:

Thank you for your letter of September 2, 1987, concerning the
application of
limited sales tax to sales of "cement kiln dust."

The sale of cement kiln dust is subject to the limited sales tax. The
cement
production tax is paid on taxable cement produced; the cement production
tax
is not paid on cement kiln dust. Sales tax should be collected on all
sales
of cement kiln dust unless the purchaser issues a properly completed
exemption, resale or direct payment exemption certificate.

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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