Ezel / Tax Rulings / TX
TX 8710L0842G14 Sales and/or Use Tax (State,Local,MTA) 1987-10-29

Were charges for collecting and transporting salt water from well sites to disposal wells or disposal areas subject to Texas sales tax?

Short answer: No. The letter said collecting or transporting salt water from a well site was not a taxable service under Rule 3.356(a)(3)(B).

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 collecting and transporting salt water from well sites to disposal wells or areas. STAR's caption calls it a garbage-collection billing-cycle document, but the body contains no garbage or billing-cycle issue, so this page follows the body. It says the opinion may change if the facts differ. Its Rule 3.356(a)(3)(B) treatment is historical; verify current law and the actual oilfield service. STAR documents may no longer represent current policy even when not marked superseded. Identity is 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

Collecting or transporting salt water from a well site to disposal wells or disposal areas was not a taxable service. The letter cited Rule 3.356(a)(3)(B), effective October 1, 1987.

The requester also asked for a copy of House Bill 61, but that administrative request did not affect the tax holding.

What this means for you

The historical ruling addressed the described oilfield salt-water movement, not garbage collection or billing cycles despite STAR's caption.

Common questions

Was salt-water collection taxable? No.

Was transportation from the well site taxable? No under the cited rule.

Did the letter decide other disposal or treatment services? No.

Citations and references

  • 34 Tex. Admin. Code Rule 3.356(a)(3)(B)

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNT
STATE OF TEXAS
AUSTIN, 78774

October 29, 1987

Dear **:

Thank you for your recent telephone call concerning the taxability of
transportation charges involved in salt water hauling from well sites
to disposal wells or areas.

The collection and/or transportation of the salt water from the well site
is not a taxable service. Please refer to Rule 3.356 (a)(3)(B) effective
October 1, 1987, enclosed.

You also requested a copy of House Bill No. 61. There is a charge of
$11.10
and may be requested from the following:

Texas Legislative Council
P.O. Box 12128
Austin, Texas 78711

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,
(Mrs.) Jo Ann Dieck
Tax Policy Division

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