Ezel / Tax Rulings / TX
TX 8710L0843E05 Sales and/or Use Tax (State,Local,MTA) 1987-10-15

Did a Texas taxpayer owe tax on the full invoice for Ohio work adding a truck body and accessories to a cab and chassis?

Short answer: Yes. The work was remodeling or the final stage of manufacturing, a taxable service, so tax accrued on the total invoice price.

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 Ohio work adding a truck body and accessories to a cab and chassis. It says the opinion may change if the facts differ. Its remodeling and manufacturing classification is historical; verify current Texas tax and interstate-use 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 STAR documents may no longer represent current policy even when not marked superseded.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

An Ohio company added a truck body and other accessories to the taxpayer's truck cab and chassis.

The Comptroller treated that work as remodeling or the final stage of manufacturing, making it a taxable service. The taxpayer had to accrue tax on the entire invoice price.

What this means for you

The historical letter did not treat the out-of-state truck outfitting as a nontaxable repair. It classified the complete body-and-accessory installation as taxable remodeling or manufacturing and used the full invoice as the tax base.

Common questions

What work was performed? A truck body and accessories were added to a cab and chassis.

How did the Comptroller classify it? As remodeling or the final stage of manufacturing.

What amount was taxable? The total invoice price.

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 l5, l987

Dear ***:

Thank you for your recent letter concerning the amount of tax you should
accrue on work done by COMPANY A in Ohio.

I understand you had a truck body and other accessories added to a truck
cab
and chassis. This job is considered remodeling or the final stage of
manufacturing and is a taxable service. You should accrue tax on the
total
invoice price.

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,
Adina Whittemore
Tax Policy Division

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