Ezel / Tax Rulings / TX
TX 8904L0929D02 Sales and/or Use Tax (State,Local,MTA) 1989-04-04

Were charges to tear down and bury PCB-contaminated property taxable in Texas?

Short answer: No. Based on the Texas Water Commission's 1989 characterization of PCBs as hazardous waste, the disposal charges were nontaxable.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 requester charged to tear down and bury PCB-contaminated property. The Comptroller said the Texas Water Commission treated PCBs as covered by the Toxic Substances Control Act and therefore as hazardous waste.

On that 1989 characterization, the disposal charge was nontaxable. The short letter does not describe the facility, disposal method, or later environmental-law requirements in enough detail to extend the answer beyond its facts.

Common questions

Were the described teardown and burial charges taxable? No.

Why? The contaminated material was treated as hazardous waste.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller April 4, 1989

Dear **:

Thank you for taking the time to discuss your question on waste
disposal this afternoon.

Your charges to tear down and bury the PCB contaminated
** is not taxable. The Texas Water Commission tells me
that PCBs are covered under the Toxic Substances Control Act.
That means the contaminated material is hazardous waste and its
disposal is not taxable.

Please don't hesitate to call me anytime I can be of assistance to
you. You can call me toll-free at 800-531-5441. Our FAX number
is 512-475-0900.

Sincerely,
Al Van Allen
Taxability Section
Legal Services Division

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