Ezel / Tax Rulings / TX
TX 8802L0861G01 Sales and/or Use Tax (State,Local,MTA) 1988-02-05

Which auto-glass, mirror, fabrication, tinting, upholstery, and installation labor charges did Texas treat as taxable in 1988?

Short answer: Texas said damaged auto-glass replacement, auto tinting, and repair or replacement of worn automotive upholstery were not taxable labor. Custom fabrication, work on personal property, non-new-construction installation, and nonresidential realty repair were 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 a taxpayer-specific February 1988 Texas Comptroller letter. It says the opinion may change if the facts differ. Motor-vehicle repair, personal-property service, new-construction, real-property repair, fabrication, tinting, upholstery, and material-consumption rules may have changed; verify current law. STAR documents may no longer represent current policy even when not marked superseded.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

The Comptroller gave different answers for different jobs:

  • Labor to replace damaged auto glass was not taxable because motor-vehicle repair labor was excluded under Rule 3.292.
  • Cutting and installing glass or mirrors in personal property was taxable.
  • Permanently installing glass or wall mirrors in new construction or an addition was not taxable. Framed mirrors were not considered permanently installed.
  • Fabricating a custom product was taxable. Installing custom or factory products was nontaxable as part of new construction but otherwise taxable as repair, remodeling, or modification.
  • Repairing improvements to nonresidential realty, such as health-spa shower doors, was taxable.
  • Auto-glass tinting labor was not taxable, but the tinting business had to pay tax on its materials.
  • Repairing or replacing worn automotive upholstery was not taxable. Upholstery work that was not repair or restoration was taxable.

What this means for you

The historical answer depended on the object being worked on, whether the job was repair or new construction, permanence of installation, and whether custom fabrication was involved.

Common questions

Was damaged auto-glass replacement labor taxable? No.

Was auto-glass tinting taxable? The labor was not, but the provider paid tax on materials.

Were permanently installed mirrors in new construction taxable? The installation labor was not; framed mirrors did not qualify as permanently installed.

Was all upholstery work exempt? No. Only repair or restoration of worn automotive upholstery was treated as nontaxable.

Citations and references

  • 34 Tex. Admin. Code Rule 3.292 — cited for motor-vehicle repair labor.
  • 34 Tex. Admin. Code Rule 3.357 — cited for new construction, repair, and remodeling.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

February 5, 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.

Labor to replace damaged auto glass is not taxable. Labor to repair
motor
vehicles is excluded from being a taxable service (refer to the attached
Rule 3.292).

Labor to cut and install glass and mirrors in personal property is
taxable. However, if glass or mirrors are being installed as part of
new construction project (building a new structure or an add-on), the
labor to permanently install the glass (in windows or on walls) or
mirrors
(on walls) is not taxable. Framed mirrors are not considered permanently
installed. Refer to attached Rule 3.357.

Labor to fabricate custom products is taxable. Labor to install custom
or
standard factory products will be or will not be taxable depending on
circumstances under which they are installed. If installed as part of
new
construction the labor is not taxable, otherwise it is repair, remodeling
or modification and taxable.

Labor to repair items that are improvements to realty are taxable when
perform on non-residential realty, e.g. repairing shower doors at a
health
spa.

Auto glass tinting is not taxable. You should pay tax on the materials
used in tinting the glass.

Labor to repair or replace worn out automotive upholstery is not taxable.
Upholstery work which is not a repair or restoration is taxable.

This opinion is based upon the facts you presented. If there are
additional 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 1-800-531-5441 from anywhere in the U.S., or
phone
(512)463-4600.

Sincerely,
Tom Soto
Tax Policy Division

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