Was a city's charge for slicing waste tires taxable when the city also removed them to a private landfill, and what if customers brought tires directly to a landfill for slicing?

Plain-English summary

Slicing tires to permit landfill disposal was not taxable by itself.

When the city combined slicing with taxable removal of the tires to a private landfill, the entire charge was taxable. If customers instead brought their tires to slicing machinery located at the landfill and paid only to have them sliced and covered there, the charge was exempt.

Common questions

Was tire slicing alone taxable? No.

Was slicing plus removal taxable? Yes, on the total charge.

What if the customer delivered the tires to the landfill? The slicing-and-covering charge there was exempt under the letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9008L1037E13

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

August 27, 1990

Dear **:

Thank you for your letter on the taxability of slicing tires
to facilitate their disposal.

Facts:

a. Effective September 1, 1990, new restrictions on landfil-
ling of whole tires will take effect as a result of new Texas
Department of Health regulations.
b. Auto and truck tires must be sliced or shredded before
they may be disposed of in landfills.
c. The machinery necessary to do this is not currently availa-
ble in YOUR CITY so the city is going to buy it themselves and
set up at their central collection site.
d. They will then charge a fee for slicing tires and removing
them to a private landfill.

Response: The charge for slicing the tires is not taxable in an
of itself. However, when it is done in connection with taxable
waste removal, the total charge is taxable. If the machinery
were located at the landfill and people simply brought their
tires out to be sliced and covered at that location, the charge
would be exempt.

This opinion is based on the facts you presented. Other fact,
though similar, may yield different results.

If you have questions or need more information, please call our
toll- free number 1 800 -5531 -5441. My direct line number is
463-4680 (FAX (512) 475-0900). You may write to me in care of
Taxability Section.

Sincerely,
Al Van Allen
Taxability Section
Legal Services Division