Ezel / Tax Rulings / TX
TX 9112L1146B13 Sales and/or Use Tax (State,Local,MTA) 1991-12-06

How did Texas tax labor and materials for removing rust and rechroming a motor vehicle's grille and bumpers without alteration?

Short answer: Rechroming the grille and bumpers was repair of component parts. Labor was not taxable, but materials were. Under a lump-sum repair the repairer paid materials tax and charged the customer no tax; under a separated contract the customer paid tax on the materials charge.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 requester removed the grille and bumpers from a 1953 Ford, removed rust, and applied new chrome without modifying or altering the parts. The Comptroller treated that work as repair of motor-vehicle component parts.

The labor was not taxable, but the materials were. Under a lump-sum repair, the repairer paid tax when buying the materials and did not collect tax from the customer. Under a separated contract, the repairer collected tax from the customer on the materials charge.

The original letter enclosed Rules 3.359 and 3.290. STAR now alerts that Rule 3.359 has been repealed and points to Rule 3.280 for aircraft issues; readers should not treat the repealed rule as current authority.

What this means for you

For the described no-alteration rechroming job, contract format controlled who bore materials tax, while repair labor remained nontaxable under the historical ruling.

Common questions

Was rechroming treated as repair? Yes. Was labor taxable? No. Were materials taxable? Yes. Is every cited rule still current? No; STAR marks Rule 3.359 repealed.

Citations and references

  • 34 Tex. Admin. Code Rule 3.290
  • Former 34 Tex. Admin. Code Rule 3.359 (repealed, according to STAR's alert)

Source

Original ruling text

ALERT: The cited rule, Rule 3.359 has been repealed. See Rule 3.280 for issues relating to Aircraft.

December 6, 1991

Dear ****:

Thank you for your recent letter regarding the taxability of motor
vehicle repairs.

You stated that you removed the grill and bumpers from a 1953 Ford for
the purpose of having them re-chromed. Rust was removed and new chrome applied
there was no modification/alteration.

Chrome Plating the bumpers and/or grill of a motor vehicle is the repair
of a component part. Tax is not due on the labor; however, the materials are
taxable.

Under the terms of a lump-sum repair, the repairman owes tax on the
materials at the time of purchase and no tax will be collected from the
customer. Under the terms of a separated contract, tax is collected from the
customer on the materials charge.

I am enclosing Rule 3.359, Motor Vehicles and Private Aircraft and Rule
3.290, Automotive Repair and Maintenance Shops.

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 1-800-531-5441, extension 5-0330. The regular number is 512/463-4600,
or write Tax Administration Division.

Sincerely,

Bettie Peterson
Tax Administration Division

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