Were charges for storing and destroying documents and microfiche taxable after the Comptroller revised an earlier 1988 answer?

Plain-English summary

The official STAR source contains an original February 2, 1988 response and a later April 19 revision.

The later controlling response said the client's charge for storing and destroying documents and microfiche was not taxable. The Comptroller understood that the client pulverized and recycled those products.

The earlier letter had said destruction and disposal were taxable and had applied a 5% rule to a lump-sum charge. Because the April letter expressly opened by revising the agency's position, that earlier answer should not be reported as the final holding.

What this means for you

For this taxpayer's described document-storage and destruction service, the Comptroller withdrew the earlier taxable answer and replaced it with a nontaxable conclusion. The source gives no rule or statute number for the revision.

Common questions

Was the client's document storage and destruction charge taxable? No, under the April 19 revised response.

What happened to the February 2 answer? It was superseded by the later letter's express revision of the agency's position.

What did the client do with the documents and microfiche? Pulverized and recycled them.

Citations and references

The source did not cite a rule or statute by number.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8804L0868F12

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
COMPTROLLER April 19, 1988

Dear ***:

I'd like to revise our agency's position on taxability of the storage and
destruction of documents and microfiche. As I understand your client
pulverizes and recycles these products.

Your client's charge for document storage and destruction is not taxable.

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, 78774

BOB BULLOCK
COMPTROLLER February 2, 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.

The charge for destruction and disposed is taxable. If a lump-sum charge
is made tax is due on the entire charge if the amount attributable to
destruction and disposal is 5% or more of the lump-sum amount.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

Please feel free to contact me if you have additional questions. You may
write me, call toll-free 1-800-252-5555 from anywhere in Texas or phone
512/463-4600.

Sincerely,
Tom Soto
Tax Policy Division