Which services of a city contractor-assistance program were taxable: site visits, consultations, research lists, document copies, fax, delivery, calls, and workshops?

Plain-English summary

The Comptroller classified ten services provided by a city contractor-assistance program.

On-site consultation and advice about particular contracts were not taxable. Workshops or conferences also generally were nontaxable when they supplied training or consultation.

Market-research lists of possible job contacts, client-to-agency match lists, and vendor-parts histories were taxable. Charges for microfiche document copies and fax transmissions were taxable as well.

Transportation, overnight delivery, and long-distance-call charges were taxable when connected with a taxable item or taxable service.

Common questions

Were site visits and contract consultations taxable? No.

Were contact lists and vendor histories taxable? Yes.

Were microfiche copies and fax transmissions taxable? Yes.

Were workshops taxable? Generally no when they provided training or consultation.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8910L0959G07

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TX 78774

October 2, 1989

Dear ****:

Thank you for your letter concerning the taxability of some of the
services provided by the *****. Below is a list
of the services provided by the program with a brief description
of the service and the taxability of each:

1. Site Visits - City personnel visit a contract site with a client to
   provide on site consultation. Not taxable.

2. Consultations - City personnel provide advice to local contractors
   concerning particular contracts. Not taxable.

3. Market Research - You provide a list to a local contractor of possi-
   ble contacts for jobs. Taxable.

4. Client/Agency Match - A list is provided to local contractors of pos-
   sible agencies to contact for jobs. Taxable.

5. USA Technical Search - You provide a manufacturer with a history on
   certain vendor's parts. Taxable.

6. Microfiche Reader - You provide microfiche copies of documents.
   Taxable.

7. Fax Transmissions - A charge for fax transmissions. Taxable.

8. Overnight delivery - Transportation and delivery charges in
   connection with a sale of a taxable item or taxable service is taxable.

9. Long Distance Calls - Charges for long distance calls in connection
   with a sale of a taxable item or taxable service are taxable.

10. Workshops/Conferences - Generally, if you are providing training or
    consultation, then the charge for the workshop is not 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, or our regular number is 512/463-4600.
My extension is 3-4658.

Sincerely,
Sherry Buckley
Tax Correspondence