After October 1, 1989, was city sales tax due on garbage collection when the service provider was inside the city but the dumpsters were outside city limits?

Plain-English summary

Effective October 1, 1989, city and county tax on garbage or solid-waste collection was based on where the waste was collected rather than where the service provider's office was located.

For billing cycles beginning on or after that date, city tax was not due on service to dumpsters outside city limits, though county use tax applied if the dumpsters were in a county imposing it. Tax collected in error could be refunded under Rule 3.325.

For billing cycles before October 1, 1989, local tax was based on the provider's business location, so the city tax applied even to those outside-city dumpsters.

Common questions

What location controlled after October 1, 1989? The waste pickup location.

Could county tax still apply outside the city? Yes, if the county imposed it.

What rule applied before the change? The service provider's place of business controlled.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9003L0990F14

Original ruling text

March 9, 1990

Dear *****:

In your letter of March 2, you requested information concerning the appropriate
tax rate to collect on solid waste collection services.

You state that you collect solid waste from dumpsters located outside the city
limits of **. Your place of business (city hall) is located inside
the city. You also indicate that you have been charging 7% sales tax on your
charges for these services. I presume that you are charging 6% state and 1%
** city sales taxes.

Effective October 1, 1989, local taxes on solid waste or garbage collection and
removal services are based on where the waste or garbage is collected as
indicated in section (k) of the enclosed Comptroller's Rule 3.356 (Real
Property Service). This statutory change should have been applied for the
first billing cycle on or after October 1, 1989. Therefore, ** city
sales tax isn't due on your charges for waste collection on dumpsters located
outside the city limits of ** (however, county use tax is due if the
dumpsters are located in a county which imposes county sales and use tax). If
you have collected tax on billing cycles on or after October 1, you may refund
the tax in accordance with the procedures and requirements outlined in the
enclosed Comptroller's Rule 3.325 (Refunds, Interest and Payments Under
Protest) and Refund Procedure for Tax Paid in Error to a Retailer.

Prior to October 1, 1989, city and county sales taxes for solid waste
collection charges were based on the location of the place of business which
performed the service. Accordingly, for billing cycles prior to October 1,
1989, ***** city sales tax was due on waste collection services on the
dumpsters located outside the city limits (again, county use tax was due of the
dumpsters were located in a taxing county).

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 3-4662. You may write me at Tax Correspondence, Comptroller of Public
Accounts.

Sincerely,

Bob Jeffcoat
Tax Correspondence