Ezel / Tax Rulings / TX
TX 8802L0891F04 Sales and/or Use Tax (State,Local,MTA) 1988-02-11

Were speech and hearing evaluations or therapy taxable, and was calibrating customers' audiometers taxable?

Short answer: Speech and hearing evaluations and therapy for communicatively handicapped people were not taxable. Calibrating audiometers for other agencies and industries 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 a taxpayer-specific February 1988 Texas Comptroller letter. It says the opinion may change if the facts differ and cites no statute or rule. STAR's caption names cable equipment, tools, and freezer units, but the operative body decides only speech and hearing services and audiometer calibration, so this page does not extend the holding to other equipment. Calibration and health-service 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 STAR documents may no longer represent current policy even when not marked superseded.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 two direct answers:

  • Speech and hearing evaluations and therapy provided to communicatively handicapped people were not taxable.
  • Calibrating audiometers for other agencies and industries was taxable.

What this means for you

The letter distinguished the professional evaluation or therapy from work performed on customer equipment. It did not decide the taxability of calibrating cable equipment, tools, or freezer units despite those items appearing in STAR's caption.

Common questions

Were speech evaluations taxable? No.

Was hearing therapy taxable? No.

Was audiometer calibration taxable? Yes.

Citations and references

The letter cites no numbered statute or rule.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

February 11, 1988

Dear****:

Thank you for your February 3, 1988, letter requesting a determination of
the
tax status of the service you perform for your customers.

Below are the services you provide and the tax status of each:

  1. Speech and hearing services are provided in the form of evaluations
    and
    therapy to the communicatively handicapped.

Answer: Not taxable.

  1. Audiometers are calibrated for other agencies and industries.

Answer: The calibration FOR audiometers for your customers is 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,
Julie Pesl
Tax Policy Division

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