Ezel / Tax Rulings / TX
TX 8911L0967G10 Sales and/or Use Tax (State,Local,MTA) 1989-11-15

Were automobile window etching and the associated theft warranty taxable when the warranty was mandatory versus optional?

Short answer: Window etching was taxable. If the etching could not be bought without the warranty, the full charge was taxable; if the warranty was optional, the warranty charge was not taxable.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Automobile window etching was taxable.

If the customer could not buy the etching without also buying the theft warranty, the entire combined charge was subject to sales tax. If the warranty was optional, the separately chosen warranty charge was not taxable.

Common questions

Was window etching taxable? Yes.

Was a required warranty taxable? Yes, as part of the full charge.

Was an optional warranty taxable? No.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller November 15, 1989

Dear ***:

Thank you for your recent letter regarding the taxability of
automobile window etching and a warranty against theft.

The window etching is taxable. If the window etching could not
be purchased without the warranty, the entire charge will be
subject to the sales tax. If the purchase of the warranty is
optional, it will not be subject to the tax.

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

Sincerely,
Bettie U. Peterson
Tax Correspondence

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