Ezel / Tax Rulings / TX
TX 8908L0959C12 Sales and/or Use Tax (State,Local,MTA) 1989-08-21

Were separately stated charges for inspecting pipe or casing taxable in Texas?

Short answer: Not when the charge covered inspection only. The Comptroller said the charge became taxable if the work involved repair, remodeling, restoration, or maintenance.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 Comptroller said a separately stated charge for inspection alone was not taxable under the law in effect when the 1989 letter was issued.

The result changed if the inspection service also involved repair, remodeling, restoration, or maintenance. In that case, the charge was taxable.

Common questions

Was inspection alone taxable? No, when separately stated.

What related work made the charge taxable? Repair, remodeling, restoration, or maintenance.

Did the short letter decide any other pipe or casing issue? No. Its operative text addressed the inspection charge only.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN 78774

August 21, 1989

Dear **:

Your letter of August 16, 1989, regarding the taxability of your
tape inspection service has been referred to me.

You are correct in that separately stated charges for inspection
only are not taxable under current law. If the inspection
involves repair, remodeling, restoration or maintenance, the
charge would be taxable.

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

If you have any questions, please contact Tax Correspondence. You
may call toll-free 1-800-252-5555. My extension is 34608.

Sincerely,
Brad Gabbart
Tax Correspondence

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