Ezel / Tax Rulings / TX
TX 8909L0958F05 Sales and/or Use Tax (State,Local,MTA) 1989-09-11

Were charges to remove combustible material from electrical cable trays taxable, and could scheduled-periodic maintenance treatment apply?

Short answer: Yes. Because the cable trays were improvements to realty, removing material from them was taxable janitorial service and waste collection under Rule 3.356(a)(1). Rule 3.357's scheduled-periodic-service provision did not apply to services taxable under Rule 3.356.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 electrical cable trays were treated as improvements to realty.

Removing combustible material from the trays was taxable real-property service—specifically janitorial service and collection of waste under Rule 3.356(a)(1).

Rule 3.357's provision for scheduled periodic service did not apply to work taxable under Rule 3.356. Scheduling the cable-tray cleaning therefore did not create that maintenance exception.

Common questions

Were the cable trays treated as realty improvements? Yes.

Was removing combustible material taxable? Yes.

Did scheduled periodic service make it exempt? No.

Citations and references

  • 34 Tex. Admin. Code Rule 3.356(a)(1)
  • 34 Tex. Admin. Code Rule 3.357

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller September 11, 1989

Dear ***:

Thank you for your letter of August 24, 1989, concerning the tax-
ability of services to clean combustible material from electrical
cable trays.

You state that our office has determined that these electrical
trays are improvements to realty. The services to remove material
from the trays are taxable as real property services, specifically
as janitorial services as defined in section (a)(1) of Rule 3.356.
The removal or cleaning of material from the trays is the collec-
tion of waste.

Rule 3.357 - Real Property Repair and Remodeling is enclosed for
reference. The provision pertaining to scheduled periodic ser-
vices does not apply to the services provided under Rule 3.356.

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, you may call
toll-free 1-800-252-5555, ext. 3-4683. The regular number is 512/
463-4600. You may write me at Tax Correspondence, Comptroller of
Public Accounts.

Sincerely,
Eddie C. Washington
Tax Correspondence

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