Ezel / Tax Rulings / TX
TX 9010L1057A11 Sales and/or Use Tax (State,Local,MTA) 1990-10-28

Could automobile dealers and repairmen buy vehicle glazes tax-free in Texas?

Short answer: Yes when the glaze was physically incorporated into a vehicle before the dealer's sale or by a repairman under a separated contract, supported by a resale certificate.

Apply this to your situation

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 Comptroller addressed products sold to automobile dealers and polish shops.

Glazes physically incorporated into a vehicle could be purchased tax-free by new- or used-car dealers that applied them before selling the vehicle. Repairmen could also buy the glazes for resale when incorporating them under separated contracts.

The seller could accept a properly completed resale certificate.

The letter said an earlier product list required no changes under then-current law, but the list is not reproduced in the ruling. The body therefore does not establish the tax treatment of shampoo, soap, or any other individual item named only in STAR metadata.

What this means for you

The grounded holding is limited to glaze incorporated into a vehicle. It should not be expanded to unlisted cleaning or preparation products.

Common questions

Could a dealer buy incorporated glaze for resale? Yes.

Did the vehicle need to be held for sale? Yes under the dealer facts described.

Could a repairman qualify? Yes under a separated contract.

What documentation was required? A properly completed resale certificate.

Did the body decide whether shampoo or soap was taxable? No.

Citations and references

The letter did not cite a specific statute or administrative rule.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller October 28, 1990

Dear *:

I am responding to your letter regarding the taxability of
products sold to automobile dealers and polish shops.

Glazes that are physically incorporated into an automobile
can be purchased tax free by new/used car dealers who incor-
porate these glazes onto the surface of the automobile prior
to its sale and by repairmen performing repairs under sepa-
rated contracts. A properly completed resale certificate
can be accepted from the purchaser in lieu of tax.

You have provided a list, previously examined by us, show-
ing the taxability of a variety of items you sell. I have
reviewed the list and have no changes to make with respect
to the present tax laws.

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 34666.
The regular number is 512/463-4600. You may write me at
Tax Correspondence, Comptroller of Public Accounts.

Sincerely,
Jo Ann Dieck
Tax Correspondence

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