Ezel / Tax Rulings / TX
TX 8907L1024B08 Sales and/or Use Tax (State,Local,MTA) 1989-07-28

Did moving equipment become taxable fabrication when the mover had to disassemble and reassemble it?

Short answer: No. Reassembly performed as part of the move was not taxable refabrication, so the moving service remained nontaxable when the equipment was not remodeled, repaired, or cleaned.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

An equipment owner hired a firm to disassemble a piece of equipment, move it, and reassemble it at another location. The equipment would not be remodeled, repaired, or cleaned.

The Comptroller's Tax Policy Committee determined that reassembly performed in connection with the move was not taxable refabrication. The moving service remained nontaxable even though the equipment had to be reassembled at its destination.

Common questions

Did reassembly turn the move into taxable fabrication? No.

What facts limited the answer? The equipment was only disassembled, moved, and reassembled; it was not remodeled, repaired, or cleaned.

Source

Original ruling text

July 28, 1989

Dear **:

Thank you for your letter concerning sales tax on charges for
moving and reassembling a piece of equipment. I apologize for
the delay in the response. I took your question to our Tax
Policy Committee.

I understand CORP A owns the equipment and has hired a firm to
disassemble the equipment, move, and reassemble the equipment
at another location. The equipment will not be remodeled, repaired,
or cleaned.

The Policy Committee has determined that reassembling equipment
in connection with a move, is not taxable re-fabrication. In
other words, moving equipment is still not a taxable service,
even if the equipment must be reassembled upon reaching its
destination.

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
me. The toll-free number is 1-800-531-5441. The regular number
is 512/463-4614. Or you may write me at the Taxability Section
of Legal Division. [(FAX) 512-475-0900]

Sincerely,

Adina Whittemore
Taxability Section
Legal Division

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