Ezel / Tax Rulings / TX
TX 9102L1069G05 Sales and/or Use Tax (State,Local,MTA) 1991-02-04

Did an aircraft modified and used for aerial photography qualify for Texas's manufacturing-equipment exemption?

Short answer: No. The Comptroller treated the aircraft as support equipment because it was not used directly to manufacture a photograph.

Apply this to your situation

This page answers the general question as of 1991. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1991
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 taxpayer asked whether an aircraft modified for aerial photography qualified for exemptions available to manufacturers. The Comptroller said it did not.

The aircraft itself was not used directly in manufacturing a photograph. The letter instead classified it as support equipment, which did not qualify for the exemption. The Comptroller therefore agreed with an earlier agency letter and denied the aircraft exemption.

What this means for you

Specializing or modifying equipment for a production-related business does not by itself make the equipment exempt manufacturing machinery. Under this letter's reasoning, the key distinction was direct use in manufacturing the product versus a supporting role.

Common questions

Did the aircraft qualify for the manufacturing exemption? No.

Did its modification for aerial photography change the result? No. The letter still treated the aircraft as support equipment.

What was the decisive fact? The aircraft was not used directly to manufacture the photograph.

Did the letter identify a statute or rule for the exemption? No. It referred generally to exemptions available to manufacturers.

Citations and references

No statute or administrative rule was cited in the ruling text.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

JOHN SHARP
Comptroller February 4, 1991

Dear ** :

Thank you for your letter concerning the eligibility of an air-
craft for exemptions available to manufacturers.

Although I realize that your aircraft is modified to be used for
aerial photography, the aircraft itself is not used directly in
the manufacture of a photograph. I agree with Ms. Pesl's earlier
letter that the aircraft is support equipment. Support equipment
does not qualify for exemption. The aircraft will not qualify for
exemption.

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

If you have any questions or need more information, please feel
free to contract this office. You may call toll free at 1- 800-
252-5555, or write to the division.

Sincerely,
Curt Swenson
Tax Administration Division

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