Ezel / Tax Rulings / TX
TX 9201L1146E10 Sales and/or Use Tax (State,Local,MTA) 1992-01-02

Were contract measuring services and certification of the results subject to Texas sales tax?

Short answer: A stand-alone measuring service was not taxable. If the measuring was performed in connection with selling a taxable item, the service was taxable even when separately stated. The letter defined a taxable item as tangible personal property or a taxable service.

Apply this to your situation

This page answers the general question as of 1992. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1992
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 company contracted to perform measuring services and then certified the results. The Comptroller said a stand-alone measuring service was not taxable when it was not performed in connection with the sale of a taxable item.

If the measuring service accompanied the sale of a taxable item, the service was taxable even if its charge appeared separately. The letter defined a taxable item as tangible personal property or a taxable service.

What this means for you

Separately stating the measuring fee did not control the result. A provider should determine whether the work is truly independent or connected to a taxable sale.

Common questions

Was stand-alone measuring taxable? No. Did separate billing protect measuring connected to a taxable item? No. What counted as a taxable item? The letter said tangible personal property or a taxable service.

Citations and references

  • The letter quotes the Tax Code definition of "taxable item" but does not give a section number.

Source

Original ruling text

January 2, 1992

Dear ****:

Thank you for your letter regarding the taxability of contract
measuring services. I hope you will accept my apology for the
delay in answering your tax question.

You state that your company contracts to perform measuring
services, then certifies to the results. If the service is
performed as a "stand alone service" and not performed in
connection with the sale of a taxable item, then the service
would not be taxable. If, however, the service is performed in
connection with the sale of a taxable item, then the service
(even if the charge is separately stated) is taxable. "Taxable
item" is defined in the Tax Code as tangible personal property
or taxable service.

If you have a more specific example, we can give you a more
specific answer relating to your particular activity.

This opinion is based on the facts presented. If there are
additional or different facts, the opinion could change.

If you have any questions, please don't hesitate to write the Tax
Administration Division or call one of our tax specialists toll
free at 1-800-252-5555.

Sincerely,

Joan Hale
Tax Administration Division

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