Ezel / Tax Rulings / TX
TX 9202L1157D13 Sales and/or Use Tax (State,Local,MTA) 1992-02-06

Was an incineration facility's charge to destroy hazardous medical waste collected from healthcare facilities taxable in Texas?

Short answer: No. The Comptroller said the incinerator's charge to destroy the medical waste was not taxable on the stated facts.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

A business collected and transported special waste from healthcare facilities to an incinerator. The letter stated that the medical waste qualified as hazardous waste under an earlier agency letter.

The Comptroller concluded that the incineration facility's charge to destroy the waste was not taxable.

What this means for you

Medical-waste transporters and disposal companies

This ruling addressed the incinerator's destruction charge on the specific hazardous-medical-waste facts. It did not separately analyze transportation, container sales, or other services.

Accountants and tax professionals

The source is brief and cites no statute or rule. Confirm the waste classification and current disposal-service rules before extending the result.

Common questions

Was the incineration charge taxable? No.

Did the letter classify the waste as hazardous? Yes, by referring to an earlier January 15, 1991 agency letter.

Did it decide the taxability of collection or transportation charges? No.

Citations and references

The letter cited no specific statute or rule.

Source

Original ruling text

February 6, 1992

Dear **:

Your letter concerning the taxability of charges for incineration
of medical wastes has been assigned to me for review and response.
I appreciate your patience and apologize for the delay in responding.

*** collects and transports special wastes from health care
related facilities to an incineration facility. The medical wastes
qualify as "hazardous waste" per Mr. Bob Jeffcoat's letter to you
of January 15, 1991.

Your question is whether the charge made to ** by the
incineration facility to dispose of the medical wastes is subject
to tax.

A charge to ***** to destroy waste in an incinerator is not
taxable.

This opinion is based on the facts presented. Other facts though
similar may provide a different result.

If you have other questions or need more information, you may call
512/463-4600, or 1-800-252-5555 from outside Austin. You may write
to Tax Administration Division.

Sincerely,

Gilbert Zamora
Tax Administration Division

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