Ezel / Tax Rulings / TX
TX 9202L1158C08 Sales and/or Use Tax (State,Local,MTA) 1992-02-28

Were structural changes to commercial buildings exempt from Texas sales tax when required by the Americans with Disabilities Act?

Short answer: No. The Comptroller said Texas law contained no exemption for costs incurred to comply with federal law, so charges for the required commercial-building modifications were taxable.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 Comptroller was asked whether structural modifications to commercial buildings were exempt from Texas sales tax when the work was required by the federal Americans with Disabilities Act.

The answer was no. The letter said Texas sales-tax law contained no exemption for expenses incurred while complying with federal law. Charges for the structural modifications therefore remained taxable.

What this means for you

Commercial property owners and contractors

A legal requirement to perform construction work did not create a sales-tax exemption under this ruling. The tax result depended on Texas exemption law, not on whether federal law made the project mandatory.

Accountants and tax professionals

The letter announced a narrow rule and cited no specific statutory section. It did not discuss grants, exempt customers, or other independently available exemptions.

Common questions

Were ADA compliance costs automatically exempt? No.

Why were the charges taxable? The Comptroller said the Texas Sales Tax Act provided no exemption for expenses incurred to comply with federal law.

Did the letter rule on every accessibility project? No. It addressed structural modifications to commercial buildings on the facts presented.

Citations and references

The letter cited the Americans with Disabilities Act and the Texas Sales Tax Act by name but gave no specific section number.

Source

Original ruling text

February 28, 1992

Dear ***:

Thank you for your recent letter asking about the taxability of structural
modifications made to commercial buildings to comply with the federal law
entitled "Americans With Disabilities Act."

The Texas sales tax law makes no provisions for exempting expenses incurred
while complying with federal law. Since the Texas Sales Tax Act makes no
provisions for exemption, charges for structural modifications made to
commercial buildings to comply with the Americans With Disabilities Act
are taxable.

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

If you have any additional 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. You may also write to the Tax Administration Division.

Sincerely,

Wanda Hutcheson
Tax Administration Division

Get today's answer for your situation

You just read a 1992 ruling on this question. Ezel checks current Texas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.