Ezel / Tax Rulings / TX
TX 8803L0870C01 Sales and/or Use Tax (State,Local,MTA) 1988-03-14

Were receipts from coin-operated breath analyzers taxable, and did the operator owe tax when buying the machines?

Short answer: The receipts were not subject to sales tax, but sales tax was due when the operator purchased the breath-analyzer machines.

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. It addresses only the described coin-operated breath analyzers and does not explain a rule or statute; verify current treatment of machine receipts and equipment purchases before applying it today. Letters on STAR can support detrimental reliance only for the taxpayer directly issued the letter and may no longer represent current policy. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional.
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 receipts from the described coin-operated breath analyzers were not subject to sales tax.

The operator still owed sales tax when purchasing the machines.

What this means for you

The 1988 letter distinguished the customer receipts from the operator's equipment purchase: the receipts were nontaxable, but the machines were taxable inputs.

Common questions

Were coin receipts taxable? No.

Was the machine purchase taxable? Yes.

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

March 14, 1988

Dear *****:

Thank you for your letter concerning the sales taxability of
coin-operated
breath analyzers.

Receipts from the coin-operated breath analyzers are not subject to sales
tax. However, sales tax is due at the time of purchase on these
machines.

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,
(Mrs.) Jo Ann Dieck
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.