Ezel / Tax Rulings / TX
TX 8802L0858D09 Sales and/or Use Tax (State,Local,MTA) 1988-02-04

Were modular walk-in coolers and freezers that could be readily disassembled and relocated tangible personal property, and was labor on them taxable?

Short answer: Yes. The pre-engineered modular units were tangible personal property, so assembly, installation, repair, maintenance, restoration, and remodeling labor was 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 4, 1988 Texas Comptroller of Public Accounts letter concerning pre-engineered modular walk-in units, published on STAR. Its tangible-personal-property and labor classifications depend on the units being readily disassembled and relocated; verify current fixture and taxable-service law before applying it 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 Letters on STAR can support detrimental reliance only for the taxpayer directly issued the letter and may no longer represent current policy.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. Consult a licensed Texas tax professional.
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 classified pre-engineered walk-in coolers and freezers made from modular panels that could be readily disassembled and relocated as tangible personal property.

Labor to assemble or install the units was taxable. Labor to repair, maintain, restore, or remodel them was also taxable.

What this means for you

The ability to disassemble and relocate the unit supported personal-property treatment under this 1988 letter.

Common questions

Were the modular units real property? No.

Was installation labor taxable? Yes.

Were repair and maintenance taxable? Yes.

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, 78774

February 4, 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 pre-engineered, walk-in coolers and freezers which are installed with
modular panel sections which can be readily disassembled and relocated
are
considered tangible personal property. The labor to assemble or install
them is taxable. Labor to repair, maintain, restore and remodel them is
also
taxable.

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 our
toll-free
number 1-800-531-5441. 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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