Ezel / Tax Rulings / TX
TX 8901L0921G13 Sales and/or Use Tax (State,Local,MTA) 1989-01-30

Were charges for lifting and moving large equipment with a crane taxable when no other taxable service was performed?

Short answer: No. Texas treated the work as nontaxable third-party transportation, regardless of lump-sum or separated billing and regardless of the property's classification.

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This page answers the general question as of 1989. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1989
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 Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
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 business used a crane and operator to lift and move large equipment, such as five-ton air conditioners and compressors, from one location to another. It did not alter, remodel, restore, or perform another taxable service on the equipment.

The Comptroller treated the charge as nontaxable third-party transportation. The answer did not change based on lump-sum versus separated billing or on whether the moved equipment was considered real property or tangible personal property.

Common questions

Was the lifting-and-moving charge taxable? No under the stated facts.

Did the billing format matter? No. Lump-sum and separated charges received the same answer.

Did the property's classification matter? No. The letter gave the same answer for real or tangible personal property.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774
BOB BULLOCK
Comptroller

January 30,1989

Dear **:

This is in response to your letter of January 18, 1989, concerning
the taxability of charges for lifting and moving tangible personal
property. Your client is in the business of moving large pieces
of equipment, i.e., 5 ton air conditioners, compressors, etc.,
from one location to another. The work is performed using a crane
and operator and is billed both lump sum or separated. The client
does not otherwise alter, change, remodel restore, or perform any
other taxable service in connection with moving this equipment.

The charge to lift and move the equipment from one location to
another is considered to be third party transportation and would
not be taxable. The fact that the customer is billed lump sum or
separated or that the equipment is considered real property or
tangible personal property would not affect this answer.

This opinion is based on the facts presented. Additional or
different facts could result in a different opinion.

If you have any question 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 Legal Division, Comptroller of Public
Accounts.

Sincerely,
Gilbert Zamora
Taxability Section
Legal Division

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