When were wigs, toupees, hair pieces, replacement parts, and repair or maintenance services exempt from Texas sales tax as prosthetic devices?

Plain-English summary

Wigs, toupees, hair pieces, and hair implants could qualify as prosthetic devices when purchased to replace hair missing from the body. The letter treated hair as the missing body part for Rule 3.284(a)(10).

Replacement parts designed specifically for a qualifying prosthetic device were exempt. Charges to repair or maintain a wig or hair piece bought as a prosthetic device were also exempt.

The exemption did not extend to wig cleaner, sprays, or styling products. Wigs and hair pieces bought for nonprosthetic reasons remained taxable, as did repairs or maintenance of those nonqualifying items.

The seller needed a properly completed exemption certificate identifying the qualifying item or service and stating the prosthetic-device reason. Without a certificate, the seller was to charge tax. A seller could accept a transaction-specific or blanket certificate, but was not required to accept a certificate instead of collecting tax.

Common questions

Did every wig qualify as a prosthetic device? No. It had to replace hair missing from the body.

Were repair and maintenance charges exempt? Yes, when performed on a qualifying prosthetic wig or hair piece.

Were cleaners and styling products exempt? No.

Was an exemption certificate required? Yes, for the seller to treat the sale as exempt.

Citations and references

• 34 Tex. Admin. Code Rule 3.284(a)(10)
• 34 Tex. Admin. Code Rule 3.287

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8910L0964F01

Original ruling text

October 17, 1989

Dear **:

Thank you for your letter requesting clarification of sales tax due on wigs
sold as prosthetic devices and the related supplies and services subsequently
sold to maintain and repair these wigs.

Wigs may qualify for exemption from sales and use taxes only when purchased for
use as a prosthetic device. A prosthetic device is one that replaces a missing
part of the body, which performs the function of a vital organ or appendage of
the human body, or which is permanently implemented in the body. In this case,
the missing part is hair. Therefore wigs, toupees, hair pieces, and hair
implants may qualify as prosthetic devices when purchased to replace hair that
is missing from the body. Please see Rule 3.284 (a)(10).

Sales tax is not due on replacement parts designed specifically for such
(prosthetic) devices and appliances. Sales tax is not due on charges for
services that repair or maintain the wig/hair piece that has been purchased as
a prosthetic device.

Sales tax is due on such items as wig cleaner, wig sprays and wig styling
products even though the wig may have been purchased as a prosthetic device.
Sales tax is due on wigs and other types of hair pieces that are purchased for
uses other than as a prosthetic device. Sales tax is due on the charge for
services that repair or maintain the wig/hair piece that was purchased for uses
other than as a prosthetic device.

In order to clearly identify the items/services that qualify for exemption from
those that do not, you must obtain a properly completed exemption certificate
from the purchase at the time of sale. The certificate must be completed
according to the enclosed Rule 3.287. The reason for claiming the exemption
must state that the qualifying item (wigs, hair pieces, replacement parts, and
service) is purchased as a prosthetic device or service performed on a
prosthetic device. Tax is not due when you accept a properly completed and
valid exemption certificate at the time of sale. Without such a certificate,
you should charge tax.

You may require that each transaction (the purchase of a single or multiple
items) that qualifies for this exemption be covered by an exemption
certificate. Or, you may accept a "blanket" exemption certificate that list
specific items to be purchased and the specific reason for exemption. This
blanket certificate will remain in effect until the purchaser claiming the
exemption revokes the certificate in writing. While the blanket certificate is
in effect, all items specifically described therein may be purchased tax free
by the person issuing the certificate. You should maintain all exemption
certificates and be able to tie each exempt purchase to the appropriate
exemption certificate.

Although the law provides for certain exemptions, it is not written to prefer
the exemption over the collection of tax. Because of this, sellers may choose
to accept the properly completed and valid certificates in lieu of the tax, but
they are not required to do so.

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

You may also write to Tax Correspondence, Comptroller of Public Accounts.

Sincerely,

Tax Policy Division
Tax Correspondence