Ezel / Tax Rulings / TX
TX 8803L0868D01 Sales and/or Use Tax (State,Local,MTA) 1988-03-08

Was the described child-identification program a taxable service, did it need a Texas sales-tax permit, and how were its supplies treated?

Short answer: The program was not a taxable service and did not need a sales-tax permit. It still had to pay sales tax on all materials and supplies used to provide the service.

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 1988 Texas Comptroller of Public Accounts letter published on STAR. The operative body identifies only a redacted child-identification program and does not describe the videotapes, photographs, blood samples, storage, or retrieval named in STAR's subject caption; this summary therefore does not repeat those details as decided facts. Verify current service and permit rules before applying the result today. STAR letters can support detrimental reliance only for the taxpayer directly issued the letter and may no longer represent current policy. 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 said the described child-identification program was not a taxable service. The program therefore did not have to apply for a Texas sales-tax permit.

The program still had to pay sales tax when purchasing all materials and supplies used to provide its service.

STAR's subject caption lists specific identification materials and information-handling functions, but the operative letter does not describe them. The public summary does not treat the caption as an expanded holding.

What this means for you

Under this 1988 letter, being a nontaxable service provider removed the permit and customer-collection obligations described, but it did not exempt the provider's own purchases of materials and supplies.

Common questions

Was the program's service taxable? No.

Did it need a sales-tax permit? No.

Did it pay tax on supplies? Yes, on all materials and supplies used in the service.

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

BOB BULLOCK
COMPTROLLER March 8, 1988

Dear ***:

Thank you for your letter of February 22, 1988.

***, a child identification program is not a taxable service.
Therefore, ***** is not required to apply for a sales tax permit.
Sales
tax should be paid on all materials and supplies used in providing the
services.

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

Get today's answer for your situation

You just read a 1988 ruling on this question. Ezel checks current Texas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.