Ezel / Tax Rulings / TX
TX 9009L1042F09 Sales and/or Use Tax (State,Local,MTA) 1990-09-05

Was a city's separately stated $1 recycling fee taxable when charged with monthly garbage collection?

Short answer: Yes. The recycling fee was taxable because collecting recycled items was treated as garbage or waste collection, whether or not the charge was separately stated.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

A city added a $1 recycling fee to its monthly garbage charge. The Comptroller said the recycling fee was taxable.

The seller's total charge for garbage collection was taxable, and picking up recycled items remained collection of garbage or waste. Separately stating the recycling component did not change the result.

What this means for you

Labeling part of a garbage bill as recycling did not remove it from the taxable collection service in this ruling.

Common questions

Was the $1 recycling fee taxable? Yes.

Did separately stating it make it exempt? No.

How did the Comptroller classify recyclable pickup? As garbage or waste collection.

Citations and references

  • No numbered statute or rule was cited in the letter.

Source

Original ruling text

September 5, 1990

Dear ***:

Thank you for your letter of August 22, 1990, concerning the
taxability of recycling fees included with the monthly fee
for garbage.

The $1.00 recycling fee charged by the city is taxable for
sales and use tax purposes. The total amount a seller charges
a customer for garbage collection services is taxable for
sales and use tax purposes. Whether or not any charges are
separately stated, picking-up recycled items is collection
of garbage or waste.

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

If you have any questions or need more information, please
call our toll-free number 1- 800- 252- 5555, extension 34934.
The regular number is 512/463-4600. You may also write to Tax
Correspondence, Comptroller of Public Accounts.

Sincerely,

Tax Policy Division
Tax Correspondence

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