Texas Letter Ruling 9210483L: Delivery/Courier/Messenger Service Only

Subject

Delivery/Courier/Messenger Service Only

Plain-English summary

A Texas corporation asked the Comptroller whether the fees it charged for delivering and filing documents were subject to Texas sales and use tax. The company's business, described as primarily serving the legal profession, worked like this: a client sent the company a document (in person, or by courier, mail, or fax — most often fax), and the company then delivered or filed that document as the client instructed. The company charged a fee based on the type of delivery requested.

The Comptroller's answer was no — these document delivery services are not taxable. That holds true no matter which method the client uses to get the document to the delivery company in the first place, whether that's regular mail, a common carrier, hand delivery, or fax. The ruling does note that the delivery company still owes tax on any taxable items (such as supplies) it uses to perform the service. It also adds an aside, unrelated to this taxpayer's facts, that armed courier services are taxable as security services.

What this means for you

Document delivery and courier businesses

If your business receives documents from clients by mail, fax, courier, or in person, and then delivers or files those documents as instructed, this ruling says your delivery/filing fees are not subject to Texas sales or use tax — regardless of which method the client used to send you the document. Keep in mind you still owe tax on taxable items you purchase and use to perform the service (for example, supplies consumed in the process).

Law firms and other clients of delivery services

If you use a delivery or courier service to send or file documents, this ruling indicates the vendor should not be charging you Texas sales tax on its delivery/filing fee for this type of service.

Armed courier / security-related services

The ruling flags, as an aside, that armed courier services are treated differently — they are taxable as security services in Texas. If your delivery service involves armed personnel, this ruling's "not taxable" answer does not apply to you.

Accountants and tax professionals

The ruling turns on the nature of the service (document delivery and filing) rather than the method of transmission used to get the document into the company's hands. The ruling is fact-specific: it explicitly notes that different or additional facts, though similar, might lead to a different answer, and it was issued to one taxpayer based on the facts that taxpayer presented.

Common questions

Q: Are document delivery and filing fees taxable in Texas?
A: Under this ruling, no — the Comptroller found that fees for delivering and filing documents (as described by this taxpayer) are not subject to Texas sales or use tax.

Q: Does the delivery method the client uses matter?
A: No. The ruling states the answer is the same regardless of whether the client sends the document by regular mail, common carrier, hand delivery, or facsimile transmission.

Q: Does the delivery company owe any tax at all?
A: Yes — the delivery company owes tax on taxable items it uses to perform the service, even though the delivery fee itself is not taxable.

Q: Are armed courier services treated the same way?
A: No. The ruling notes, separately from the facts of this case, that armed courier services are taxable as security services.

Q: Can another business rely on this exact ruling?
A: This letter was issued to one specific taxpayer based on the facts it presented. The ruling itself cautions that different or additional facts, even if similar, might lead to a different answer.

Citations and references

No statutes, rules, or other authorities were cited in the original ruling text.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9210483L

Original ruling text

October 6, 1992

Dear **:

Thank you for your recent letter and telephone calls. You asked about the
taxability of the following services:

The taxpayer, a Texas corporation, provides delivery and filing services
primarily to the legal profession. The documents are delivered to the taxpayer
by the client. The method of delivering documents to the taxpayer (in person or
by courier, mail or fax) is chosen by the client. The delivery method chosen by
the client is usually, but not always, via fax. Upon receipt of the document
from the client, the taxpayer either delivers or files it as instructed by the
client. The taxpayer charges the client a fee based on the type of delivery
requested.

Question: Are the fees charged for the above described services subject to
Texas sales and use tax?

Answer: No, the document delivery services you described are not subject to
tax. This is true regardless of the method the customer uses (regular mail,
common carrier, hand delivery, facsimile transmission, etc.) to get documents
into the hands of the delivery company. The delivery company owes tax on all
taxable items used to perform the services. (I should note, by the way, that
armed courier services are taxable security services.)

This opinion is based on the facts presented. Different or additional facts,
though similar, might lead to different answers. If you have further questions,
please feel free to write or call me at 1-800-252-5556, extension 3-3889.

Sincerely,

John Christian
Attorney
Tax Administration Division