Ezel / Tax Rulings / TX
TX 9007L1033D10 Sales and/or Use Tax (State,Local,MTA) 1990-07-31

Were separately billed aviation-fuel charges taxable when a flying club rented aircraft by the hour?

Short answer: No. Separately billed aviation fuel sold to the flying club's customers was not subject to tax under the letter. The hourly aircraft-rental charge itself was taxable.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

The flying club had to collect sales tax on hourly aircraft-rental charges.

Separately billed aviation-fuel charges to the rental customers were not taxable under the letter.

Common questions

Aircraft rental taxable? Yes.

Separately billed aviation fuel taxable? No.

Did the ruling address fuel included in one bundled rental price? No. It addressed fuel billed separately.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS

STATE OF TEXAS

AUSTIN, TEXAS 78774

BOB BULLOCK

Comptroller

July 31, 1990

Dear ***:

I have received your letter concerning hourly aircraft rentals.

You are correct in your assumption that if the aviation fuel sold to the flying club's customers is billed separately, the charges will not be subject to tax.

Sales tax should be collected on the charges for the rental of the aircraft.

This opinion is based on the facts presented. If there are additional facts, or if the circumstances change, the opinion may change.

Please write or call if you have any questions. You can call toll-free at 800-531-5441. our regular number is 512- 463-3830 and our FAX number is 512-475-0900.

Sincerely,

Larry Koenig

Taxability Section

Legal Services Division

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