Ezel / Tax Rulings / TX
TX 9108L1126F03 Sales and/or Use Tax (State,Local,MTA) 1991-08-19

Were customer charges for drug testing and drug screening services subject to Texas sales tax?

Short answer: No. The Comptroller concluded that performing drug tests and drug screening was not a service subject to Texas sales tax on the facts presented.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 Comptroller concluded that performing drug tests and drug screening was not a service subject to Texas sales tax on the stated facts.

What this means for you

This short 1991 letter gives a direct answer but no statutory analysis or factual detail about testing methods, personnel, or bundled products. Different facts could change the result.

Common questions

Were the described testing charges taxable? No.

Did the letter distinguish medical from nonmedical personnel? No. The published text did not analyze who performed the testing.

Citations and references

The letter did not identify a numbered statute or administrative rule.

Source

Original ruling text

August 19, 1991

Dear *****:

Thank you for your recent letter asking if the Charge to customers for
drug testing and drug screening services is subject to sales tax.

Performing drug test and drug screening is not a service subject to
sales tax.

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, you may call me
toll free at 1-800-252-5555, extension 3-4633. The regular number is
512/463-4633.

Sincerely,

Wanda Hutcheson
Tax Administration Division

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