Ezel / Tax Rulings / TX
TX 8912L0970D13 Sales and/or Use Tax (State,Local,MTA) 1989-12-18

Was heat treatment taxable when used to strengthen pipe, molds, dies, or tools, or to restore welded pipe to its original condition?

Short answer: Yes in both cases. Strengthening was taxable processing labor, while restoring an item to its original condition was taxable repair of tangible personal property.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Heat treatment used to make pipe, molds, dies, tools, or similar items stronger was taxable processing labor.

If heat treatment restored welded pipe or another item to its original condition or strength, it was taxable repair of tangible personal property. The letter noted that the total repair charge had been taxable since October 2, 1984.

Common questions

Was strengthening heat treatment taxable? Yes, as processing.

Was restorative stress relief taxable? Yes, as repair.

Did either characterization make the service nontaxable? No.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TX 78774

December 18, 1989

Dear *****:

Thank you for your letter dated December 14, 1989, concerning the
taxability of a service that you call "stress relieve".

The total charge for heat treating services that are performed on items
such as pipe, molds, dies, tools, etc. to make them stronger is taxable. The
labor is taxable processing labor.

If the heat treating is done to restore an items such as the welded pipe
that you described to its original condition or strength, then the heat
treating is considered a repair. The total charge for repairing tangible
personal property became taxable on October 2, 1984.

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

Please feel free to contact me if you have any additional questions. You
may write me, call toll-free 1-800-252-5555 (ext. 3-4685) from anywhere in the
United States or phone 512/463-4685.

Sincerely,
Julie Pesl
Tax Correspondence

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