Could a waste hauler buy roll-off boxes for resale, and was its total charge for placing, picking up, dumping, and returning the boxes taxable?

Plain-English summary

A company placed roll-off boxes at construction sites, picked them up when full, dumped the construction and demolition waste at its landfill, and returned the boxes when needed.

The company could buy the boxes tax-free by issuing resale certificates under Rule 3.356(c)(1). For six boxes already purchased with tax, it could give the supplier a resale certificate and request a refund.

The total customer charge for pickup and waste removal was taxable because Chapter 151 defined garbage and solid-waste collection or removal as a taxable service.

What this means for you

The equipment acquisition and customer service received different treatment: the boxes qualified for resale, while the entire waste-removal charge was taxable.

Common questions

Could the roll-off boxes be bought tax-free? Yes, with a resale certificate.

Could tax on previously purchased boxes be refunded? The letter said to request a refund from the supplier.

Was the waste-removal charge taxable? Yes, in full.

Citations and references

• 34 Tex. Admin. Code Rule 3.356(c)(1) — resale treatment for the boxes
• 34 Tex. Admin. Code Rule 3.285 — current STAR reference for resale and care-custody-and-control guidance
• Texas Tax Code Chapter 151 — taxable garbage and solid-waste collection or removal

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9108L1127C09

Original ruling text

ALERT: For specific guidance relating to the care, custody and control of TPP when providing a taxable service, please see Rule 3.285, Resale Certificates; Sales for Resale (amended 11/01/2017.

August 16, 1991

Dear **:

Thank you for your recent letters requesting information on the taxability
of roll-off boxes and your company's roll-off services. The facts are as
follows:

** purchases roll-off boxes. * paid tax on six of
these boxes at the time of purchase. * delivers the boxes to
*'s customers and sets them up to accept construction and
demolition waste. When the roll-off boxes are full, *'s
customers call * to pick up and dump (pull) the boxes.
* picks up the full boxes, dumps the contents at ****'s
landfill and delivers the boxes back to the construction site, if needed.

You asked if the boxes could be purchased tax free and if the charge to
**'s customers for this service was taxable?

Response: The boxes may be purchased tax free by ** by issuing
a resale certificate to suppliers in lieu of tax. Please refer to
section (c)(1) of the enclosed Rule 3.356. For the six boxes already
purchased, **** should issue a resale certificate to the supplier
from whom the purchases were made and ask for a refund of tax paid.

The total charge to **'s customers for the pick up and removal
of the waste is taxable. Garbage and other solid waste collection or
removal is defined as a taxable service by Chapter 151 of the Tax Code.

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