Ezel / Tax Rulings / TX
TX 9110L1135B13 Sales and/or Use Tax (State,Local,MTA) 1991-10-01

Were live and automated telephone-answering services subject to Texas sales tax beginning October 1, 1991?

Short answer: Yes. Charges for all answering services became taxable on October 1, 1991. The letter noted that automated answering services had already been taxable since 1985.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 said charges for all telephone-answering services became taxable on October 1, 1991. That brought live or human answering services into taxable treatment.

Automated answering services were not newly taxable on that date; the letter says they had already been subject to sales tax since 1985. It directed the provider to obtain a sales-tax permit.

What this means for you

For the historical period addressed, both live and automated answering services were taxable after October 1, 1991. The letter provides no separate exemption based on whether a person or a machine answered the call.

Common questions

When did all answering services become taxable? October 1, 1991.

Were automated services taxable before then? Yes. The letter says automated answering services had been taxable since 1985.

Did the provider need a permit? The Comptroller directed the provider to obtain a sales-tax permit.

Citations and references

  • The letter does not identify a numbered statute or administrative rule.

Source

Original ruling text

October 1, 1991

Dear *****:

Thank you for your recent letter regarding the taxability of
telephone answering services.

As we discussed, charges for all answering services will become
taxable effective October 1, 1991. Automated answering services
have been subject to sales tax since 1985. You can obtain a
sales tax permit at either of our San Antonio field offices.
The addresses and phone numbers are listed below.

  • 5825 Callaghan Road, Suite 100 - phone 684-8652 or

  • 103 S.W. Military Dr. - phone 924-6434.

If you have questions or need more information, please call or
write. You may reach me by calling toll free, 1 (800) 531-5441.
My direct line number is (512)463-4680. The number for FAX
transmissions is (512) 475- 0900. You may write me in care of
Tax Administration Division.

Sincerely,

Al Van Allen
Tax Administration Division

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