Ezel / Tax Rulings / TX
TX 8911L1020B13 Sales and/or Use Tax (State,Local,MTA) 1989-11-17

How were residential light fixtures and yard lights taxed when sold and installed under a separated contract?

Short answer: The installed lights were improvements to realty. The seller collected tax on the separately stated fixture price, while labor to install the fixtures on residential property 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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Light fixtures attached to the residence with mounting plates or boxes, and a yard light mounted on a pole, became improvements to realty when installed.

Under the separated contract, the seller collected tax on the separately stated fixture price. Labor to install the fixtures on residential property was not taxable.

STAR's subject metadata also mentions commercial property and repair or remodeling, but the operative body decides only the residential separated-contract installation described here.

Common questions

Were the installed fixtures real-property improvements? Yes.

Was the fixture price taxable? Yes.

Was residential installation labor taxable? No.

Source

Original ruling text

November 17, 1989

Dear **:

Your letter and the information you sent regarding the light
fixtures to be sold to residential customers have been reviewed.

You explained that most of the light fixtures will be attached to
the residence with either a surface mounting plate or a surface
mounting box. They will be held in place by two screws. You will
also sell a yard light that will be mounted on a pole. The
fixtures will be sold installed or not installed. The contract
for the sale and installation will list the cost of the fixture
and the cost of the labor for installation separately.

The lights attached to the residence and the yard light, when
installed, are improvements to realty. Under a separated
contract, the tax must be collected on the separately stated
charge for the light fixture. The labor to install the light
fixture on residential property 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 or need additional information, you may
call me toll free at 1-800-252-5555, extension 3-4666. You may
write to Tax Correspondence, Comptroller of Public Accounts.

Sincerely,

Jo Ann Dieck
Tax Correspondence

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