Ezel / Tax Rulings / TX
TX 8802L0858A09 Sales and/or Use Tax (State,Local,MTA) 1988-02-01

How did Texas tax residential ceiling-fan repair, tangible-personal-property repairs, trip charges, service contracts, and items shipped out of state?

Short answer: Residential ceiling-fan repair labor and its trip charge were nontaxable, while personal-property repairs were taxable in full. Fan service-contract charges and out-of-state shipments were not taxable.

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 an official February 2, 1988 Texas Comptroller of Public Accounts letter published on STAR. Its ceiling-fan real-property classification, October 2, 1984 personal-property effective date, service-contract treatment, trip-charge result, and out-of-state shipment rule are historical; verify current repair and sourcing law before applying them today. Letters on STAR can support detrimental reliance only for the taxpayer directly issued the letter and may no longer represent current policy. 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

A ceiling fan was part of real property. Labor to repair a fan in a residence was not taxable, and neither was the trip charge.

Repairs to tangible personal property were taxable on the total charge, including labor, materials, trip charges, shipping, and handling, whether performed at the residence or in the repair shop.

Charges under a service contract for work on a ceiling fan were not taxable. A repaired item shipped to an out-of-state customer was also not subject to Texas tax.

What this means for you

The classification of the repaired item and delivery destination controlled the 1988 result. The source contrasts a residential real-property fixture with movable personal property.

Common questions

Was residential ceiling-fan repair labor taxable? No.

Was its trip charge taxable? No.

Were personal-property repair charges taxable? Yes, in full.

Was an item shipped out of state taxable? No.

Citations and references

The letter did not cite a rule or statute by number.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

February 2, 1988

Dear ***:

Thank you for your inquiry about the changes in the sales tax law.
Persons who are interested enough to make inquiry such as yours are a
great help to his agency in administering these laws.

A ceiling fan is considered a part of real property. Therefore, the
labor to repair a fan located in a residence is not taxable. The trip
charge is not taxable.

Repair of tangible personal property became taxable on October 2, 1984.

It does not matter whether the personal property is located in a resi-
dence or is delivered to your shop for repairs. The total charge is
taxable including labor, materials, trip charges, shipping and handling.

The charges under a service contract to perform work on a ceiling fan
would not be taxable.

A repair item shipped to a customer out-of-state would not be subject to
Texas tax.

This opinion is based upon the facts you presented. If there are addi-
tional or different facts, this opinion may change.

Please feel free to contact me if you have additional questions. You may
write me, call toll-free 1-800-252-5555 from anywhere in Texas or phone
512/468-4600.

Sincerely,
Tom Soto
Tax Policy Division

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