Is labor to fabricate and remodel scaffolding used to repair, remodel, and maintain licensed and certificated aircraft taxable in Texas?

Subject

Scaffolding Fabrication/Remodel Labor For Licensed And Certificated Aircraft Repair Is Exempt

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9308L1251G12

Plain-English Summary

A taxpayer wrote in asking about the taxability of labor to fabricate and remodel scaffolding used to repair, remodel, and maintain aircraft that are licensed and certificated carriers.

The Comptroller agreed: charges to fabricate and remodel scaffolding used to repair, remodel, and maintain aircraft that are licensed and certificated carriers are exempt under Tax Code Section 151.328(d).

The letter closes with the standard caveat that the opinion is rendered based on the facts submitted, and that other facts, though similar, may yield different results.

What This Means For You

Fabrication and remodel labor on scaffolding used for aircraft work can qualify for exemption. If you fabricate or remodel scaffolding that is used to repair, remodel, or maintain aircraft that are licensed and certificated carriers, this letter indicates that labor charge is exempt under Tax Code Section 151.328(d).

The exemption is tied to the aircraft's status. The letter specifically references aircraft that are "licensed and certificated carriers" — the exemption discussed here is grounded in that particular fact.

This is a facts-based opinion. The Comptroller notes explicitly that the ruling is based on the facts the taxpayer submitted, and that other facts, though similar, may yield a different result. Businesses in a similar situation should confirm their own facts align before relying on this conclusion.

Q&A

Q: Is labor to fabricate scaffolding used to repair aircraft taxable in Texas?
A: No. The letter states that charges to fabricate and remodel scaffolding used to repair, remodel, and maintain aircraft that are licensed and certificated carriers are exempt under Tax Code Section 151.328(d).

Q: Does the exemption cover remodeling the scaffold, or just building it new?
A: Both. The letter covers charges "to fabricate and remodel scaffolding."

Q: What kind of aircraft does this exemption apply to?
A: Aircraft that are licensed and certificated carriers, used for repair, remodeling, and maintenance purposes.

Q: What statute is this exemption based on?
A: Tax Code Section 151.328(d), as cited in the letter.

Q: Can I rely on this letter for my own situation?
A: The letter cautions that the opinion is rendered based on the facts submitted, and that other facts, though similar, may yield different results.

Original ruling text

August 6, 1993

Dear ***:

Thank you for your recent letter asking about the taxability of labor
to fabricate and remodel scaffolding used to repair, remodel, and
maintain aircraft that are licensed and certificated carriers.

I agree that charges to fabricate and remodel scaffolding used to
repair, remodel, and maintain aircraft that are licensed and
certificated carriers are exempt under Tax Code Section 151.328(d).

This opinion is rendered based on the facts you submitted. Other
facts, though similar, may yield different results.

If you have questions or need more information, please call or write.
You may reach me by calling toll free, (800) 531 -5441 (ext. 34680).
My direct line number is (512) 463-4680. The number for FAX
transmissions is (512) 475-0900. You may write to me in care of Tax
Administration Division.

Sincerely,

Al Van Allen
Tax Administration Division

NOTE: Previous Accession Number 9308061L.3 and/or 9308061L