Ezel / Tax Rulings / TX
TX 8801L0919F05 Sales and/or Use Tax (State,Local,MTA) 1988-01-29

Which location determined Texas city, county, and MTA sales tax on cable-television service after August 31, 1987?

Short answer: The customer's location. Cable companies had to use that basis beginning with each customer's regular monthly billing period starting on or after August 31, 1987. Previously, local tax followed the seller's place of business.

Apply this to your situation

This page answers the general question as of 1988. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1988
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 January 1988 Texas Comptroller letter describing a local-tax sourcing change effective August 31, 1987. It says the opinion may change if the facts differ and cites no statute or rule. Cable-service, city, county, MTA, customer-location, billing-period, and public-access-fee rules may have changed; verify current law. The letter also states that a 2% city public-access fee was outside the Comptroller's jurisdiction. STAR documents may no longer represent current policy even when not marked superseded. Taxpayer-identifying details 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

Effective August 31, 1987, city, county, and MTA sales taxes on cable-television service were based on the customer's location rather than the seller's place of business.

Cable companies had to begin using the new basis with each customer's regular monthly billing period that began on or after August 31, 1987. Before the change, local tax was based on the seller's place of business.

The Comptroller also said the 2% city public-access fee was outside its jurisdiction.

What this means for you

This historical letter documents a change in local-tax sourcing and its billing-period transition. It does not establish current cable or communications sourcing rules.

Common questions

Which location controlled after the change? The customer's location.

Which local taxes did the letter name? City, county, and MTA sales taxes.

When did cable companies change their billing? For regular monthly billing periods beginning on or after August 31, 1987.

Did the Comptroller administer the 2% city public-access fee? No.

Citations and references

The letter cites no numbered statute or rule.

Source

Original ruling text

January 29, 1988

Dear ***

On behalf of Mr. Bullock, I hope you'll accept my apology for the delay in answering your
question involving changes in the sales tax law. This isn't the way we normally do business.

Our people were, and still are, swamped by a deluge of inquiries as they attempted to
interpret provisions of the new law and draft rules which would not adversely impact
businesses. In many instances, an answer to a question just wasn't available when the
question arrived.

The change in application of local tax on cable television services was effective August
31, 1987. City, county and MTA sales taxes are due based on the tax rate at the customer's
location.

The cable television companies should have charged the collection of local tax to this new
basis beginning with the customer's regular monthly billing period which began on or after
August 31, 1987.

Prior to this change the local tax was due based upon the seller's place of business.

The 2% city public access fee is not under the Comptroller's jurisdiction.

This opinion is based on the facts presented. If there are additional or different facts,
the opinion may change.

You may write me at the Tax Policy Division.

Sincerely,

Tax Policy Division

Get today's answer for your situation

You just read a 1988 ruling on this question. Ezel checks current Texas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.