Ezel / Tax Rulings / TX
TX 9106L1117A01 Sales and/or Use Tax (State,Local,MTA) 1991-06-11

Were Escaid 110, Norpar 13, Paranox 106, and polyacrylic acid A-3 treated as diesel fuel or as sales-taxable materials?

Short answer: They were subject to sales tax. Although some material might work in a diesel engine, it was not classified and taxed as diesel fuel unless actually used in a motor vehicle.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

A requester asked about four surplus products available from COMPANY ABC: Escaid 110, Norpar 13, Paranox 106, and polyacrylic acid A-3.

The Comptroller said some of the material might be suitable for use in a diesel engine, but it was not diesel fuel and would not be classified and taxed as diesel fuel unless it was actually used in a motor vehicle.

Absent that motor-vehicle use, the letter directed the requester to treat the materials as subject to sales tax.

What this means for you

A product's potential suitability for a diesel engine did not by itself determine the tax classification. Under this letter, actual motor-vehicle use was the condition for diesel-fuel treatment; otherwise the listed surplus materials were sales-taxable.

Common questions

Were all four products subject to sales tax? Yes, on the facts presented.

Did possible use in a diesel engine make them diesel fuel? No.

When could diesel-fuel classification apply? If the material was actually used in a motor vehicle.

Citations and references

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

Source

Original ruling text

June 11, 1991

Dear **:

Thank you for your letter and the information concerning certain
surplus material available from COMPANY ABC.

The specific products listed are as follows:

** Escaid 110
* Norpar 13
* Paranox 106
**** Polyacrylic acid A-3

Although some of this material might be suitable for use in a
diesel engine, it is not diesel fuel, and would not be classified
and taxed as such, unless actually used in a motor vehicle.

You should, therefore, consider this material as being subject to
the sales tax.

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

Should you have additional questions or need more information
concerning this, please call me at our toll-free number
1-800-531-5441, extension 3-4623. for answers to general ques-
tions, call 1-800-252-5555. The regular number is 512/463-4600.
You may write me by directing your letter to the attention of Tax
Administration Division.

Sincerely,

G. C. Edgar
Tax Administration Division

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