After revising its earlier answer, did Texas tax the total charge for providing and setting up chairs at a graveside?

Plain-English summary

The February 5 letter initially treated rental of cemetery equipment, graveside setup, Sunday service, and excess mileage as taxable.

On February 11, the Comptroller revised the answer for the total charge to provide and set up chairs at the graveside, treating it as a nontaxable service. The reason was that no true rental occurred and the funeral director did not have constructive possession of the chairs.

The revision does not expressly say whether it also changed the earlier treatment of tents, Sunday service, or excess mileage. Those charges remain unresolved by the later text.

What this means for you

The operative answer for graveside chairs is the later nontaxable-service conclusion, not the earlier taxable-rental conclusion. The distinction turned on whether the customer actually or constructively possessed rented property.

Common questions

Was the combined chair rental-and-setup charge taxable? No under the February 11 revision.

Why was it not treated as a rental? The Comptroller said there was no true rental and no constructive possession by the funeral director.

Did the revision also make tent setup, Sunday service, or excess mileage nontaxable? The later letter does not say.

Citations and references

The source cites no numbered statute or rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8802L0895A06

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller February 11, 1988

Dear ***:

I'd like to revise my letter of February 5th regarding "rental and setup"
of
chairs at the graveside and consider the total charge for rental and
setup as
the provision of a nontaxable service.

In my opinion a true rental has not occurred and the funeral director
does
not have constructive possession of the chairs.

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,
AL Van Allen
Tax Policy Division

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.

You have inquired regarding a charge for rental of cemetery equipment and
"setup" of tent and chairs at the grave side. We agree that the charge
which you make for rental of equipment is subject to the sales tax and is
properly assessed as such in your billing. It also appears, however,
that
the charges for "setup," "Sunday Service," and "excess mileage" are also
subject to sales tax. I will notify the City of *** of this
ruling.

This opinion is based upon the fact 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, or call toll free 1-800-252-5555 from anywhere in Texas or
phone
512/463-4600.

Sincerely,
Allan G. Van Allan
Tax Policy Division