Ezel / Tax Rulings / TX
TX 9005L1018C02 Sales and/or Use Tax (State,Local,MTA) 1990-05-10

Was towing a car from the owner's home directly to a repair shop taxable, and what if the wrecker stored the car first?

Short answer: Direct towing from the home to the repair shop was nontaxable. Towing related to vehicle storage was taxable if the wrecker stored the car before delivery, unless the towing fee was separately stated on the bill.

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This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Towing was generally nontaxable. On the facts presented, no tax was due when the wrecker took the car directly from the owner's house to the repair shop.

The result changed when towing was related to vehicle storage. If the wrecker picked up the car, stored it, and later delivered it to the repair shop, the towing fee was taxable unless it was separately stated on the bill.

Common questions

Was direct towing to the repair shop taxable? No.

Was towing after the car was stored taxable? Yes, unless the towing fee was separately stated.

Source

Original ruling text

May 10, 1990

Dear ****:

Your letter asking, in effect, if sales tax is due on towing service came
to my attention.

First, I'm embarrassed by your statement that our people in Beaumont and
our people here in Austin were unable to answer your question.

The answers that follow are based on the information in your letter.

Generally, Tax isn't due on towing service. Assuming the wrecker took
your car directly from your house to the repair shop, the tax wasn't due.

Now, tax would be due on towing service related to the storage of a car.
If the wrecker picked up your car and "stored" it before taking it to the
repair shop, tax would be due on the towing fee unless the towing fee was
separately stated on the bill.

Let me know any time I can be of service to you.

Sincerely,

BOB BULLOCK
Comptroller of Public Accounts

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