Was Texas sales tax due when a mover disassembled, transported, and reassembled an existing portable hot tub?

Plain-English summary

The requester hired a company to move a portable hot tub from a relative's house. The company disassembled the tub, transported it, and reassembled it in the same form. The tub had no surrounding deck and was not otherwise permanently attached to the new property.

The Comptroller said no sales tax was due. The company acted only as a mover and did not sell the tub, so it did not collect tax on the disassembly, transportation, or reassembly charges.

The answer could change if the company sold the tub, reconfigured, remodeled, or repaired it, built decking around it, or otherwise permanently attached it to the property.

What this means for you

The narrow holding depended on moving an existing portable item without changing or permanently installing it. A combined sale, repair, remodeling, or real-property installation could receive different treatment.

Common questions

Was disassembly taxable? No, under these facts.

Were transportation and reassembly taxable? No.

Did portability matter? Yes. The tub was not permanently affixed to the property.

What facts could change the answer? A sale, repair, remodeling, reconfiguration, decking, or permanent attachment.

Citations and references

• The letter did not cite a numbered statute, regulation, or case.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9105L1106B13

Original ruling text

May 8, 1991

Dear *****:

Thank you for your recent letter. As I understand it, you
paid a company, **, to move a portable hot
tub from your brother's house to your house. *
disassembled the tub, moved it, and reassembled it in the
same fashion at your house. There is no decking surrounding
the tub, and it is not otherwise permanently affixed to your
real property. You ask whether sales tax is applicable to
any portion of the work done by ***.

If the above facts are accurate, then no tax is due on this
transaction. The company may have assessed tax on your bill
because they are accustomed to charging tax (as they are
supposed to) on a bill for the sale, transportation and
installation of a portable hot tub.

In your case, however, it appears that the company merely
acted as a mover. Since the company did not sell the hot
tub to you, it does not have to collect tax on charges for
disassembly, transportation, or reassembly of the hot tub.

Parts of this answer would change if the company had sold
the tub to you, or reconfigured, remodeled, or repaired the
tub for you. The answer might be different too, if the
company built decking around the tub at your house, or
otherwise permanently affixed the tub to your property.

This opinion is based on the facts presented. Different
facts, though similar, might lead to different answers. If
you have further questions, feel free to write or call
1-800-252-5555. My direct extension is 3-3889.

Sincerely,

John Christian
Attorney
Tax Administration