Is a service that picks up and removes dead or dying cattle/livestock from a ranch taxable as a Texas 'waste removal service'?

Plain-English summary

A taxpayer wrote to the Comptroller in April 1994 asking whether a service that picks up and removes dead or dying livestock (cattle/cows) is taxable. The Comptroller's short answer: this service is not taxable as a waste removal service.

The letter is very brief — it states the conclusion without walking through a statutory analysis or explaining why removal of dead livestock falls outside the definition of a taxable waste removal service. As with all STAR letter rulings, the Comptroller notes that the opinion is based on the specific facts presented, and that the answer could change if the facts are different (for example, if the service involved something beyond simply picking up and hauling away dead or dying animals).

What this means for you

Ranchers and livestock operators

If you pay a third party to come pick up and haul away dead or dying cattle or other livestock, this ruling indicates the Comptroller does not treat that specific service as a taxable waste removal service, so tax should not apply to it on that basis.

Dead-animal removal / rendering and disposal services

If your business picks up and removes dead or dying livestock from ranches or farms, this letter suggests you should not be charging sales tax on that specific service as a "waste removal service." However, because the letter gives no statutory citation or detailed reasoning, and is expressly limited to the facts the taxpayer described, you should confirm how the underlying "waste removal service" definition and any agricultural-activity treatment apply to your exact operations (e.g., whether you also provide other taxable services alongside the pickup).

Accountants and tax professionals advising agricultural clients

This is a favorable but thin precedent — a one-paragraph holding with no reasoning or citations. It is useful as evidence of the Comptroller's position on this narrow fact pattern, but you should verify current STAR guidance and any applicable rules on waste removal services and agricultural exemptions before relying on it for a client's situation that differs even slightly from "picking up and removing dead or dying livestock."

Common questions

Q: Does Texas sales tax apply to a service that picks up dead cattle from a ranch?
A: According to this 1994 letter ruling, no — the Comptroller determined that picking up and removing dead or dying livestock is not taxable as a waste removal service.

Q: Why isn't this considered a taxable waste removal service?
A: The letter does not explain its reasoning. It states the conclusion only, based on the specific facts the taxpayer presented, without citing a statute or rule.

Q: Would this ruling still apply if the service did more than just pick up dead animals?
A: Not necessarily. The Comptroller expressly notes that its opinion is based on the facts presented and "if there are any additional or different facts, the opinion may change." A service that combines dead-animal pickup with other activities may be analyzed differently.

Q: Can I rely on this letter for my own business?
A: Only the taxpayer who received this letter can rely on it directly as protection against a detrimental-reliance claim. Others can look to it as an indication of Comptroller policy, but should confirm current guidance for their specific facts.

Citations and references

No statutes or administrative rules are cited in the body of this letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9405L1298C03

Original ruling text

May 4, 1994

Dear**:

Thank you for your letter of April 21, 1994. You asked that we
address the taxability of removal of dead or dying livestock.

The service you will provide is not taxable as a waste removal
service.

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

If you have any questions or need additional information, you
may call toll free 1-800-531-5441, ext. 50037. The regular Austin
number is 512/475-0037. You also may write to Tax Administration
Division.

Sincerely,

Lindey Osborne
Tax Administration Division

NOTE: Previous Accession Number 9405284L