How did Texas tax painted or vinyl lettering on vehicles, movable signs, traffic signs, and commercial building doors, windows, and walls?

Plain-English summary

The total charge for temporary windshield signs, uninstalled wooden or metal signs, vehicle lettering, traffic signs, showcards, and vinyl lettering applied to vehicles or movable signs was taxable both in 1988 and before October 2, 1984. A governmental agency could give an exemption certificate for traffic signs.

Graphics on store display windows, business hours painted on doors, signs painted on business walls, and vinyl lettering applied to commercial doors, windows, or walls had not been taxable labor before January 1, 1988. On that date, the letter said they became taxable repair and remodeling of nonresidential real property.

What this means for you

The 1988 guidance distinguished movable or vehicle sign work from lettering incorporated into commercial realty, but both categories were taxable after the January change.

Common questions

Was lettering on trucks or cars taxable? Yes.

Were uninstalled wooden or metal signs taxable? Yes.

When did commercial-building graphics become taxable? January 1, 1988.

Could government buyers exempt traffic signs? Yes, with an exemption certificate.

Citations and references

• 34 Tex. Admin. Code Rule 3.312(a)(2) and (3), applied to graphic-arts work.
• Rule 3.357(a)(6) and (7), applied to nonresidential real-property lettering.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8802L0862G06

Original ruling text

February 25, 1988

Dear Ms. ***:

Thank you for your recent letter regarding the taxability of the various
services your company performs.

The total charges for the following services performed by your company are
taxable both now and prior to October 2, 1984.

1) Painting temporary signs on windshields of automobiles on car lots.

2) Painting of wooden and metal signs, not installed.

3) Lettering on the sides of trucks and cars.

4) Painting of traffic signs (Governmental agencies may issue an exemption
certificate in lieu of the tax).

5) Painting of showcards.

6) Furnishing and applying vinyl lettering onto trucks, wooden, or metal signs.

7) Painting of traffic signs.

Prior to January 1, 1988, the following services were not subject to the tax on
labor.

l) Graphics on store display windows.

2) Painting of business hours on doors.

3) Painting of signs on interior and exterior walls of businesses.

4) Furnishing and applying of vinyl lettering to doors, windows, interior and
exterior walls. Effective January 1, 1988 these services became taxable
services as repair and remodeling of non-residential real property.

Rule 3.312(a)(2) and (3) apply as well as Rule 3.357(a)(6) and (7). Copies of
these rules are attached.

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