Is a table whose sole purpose is to support an electric rotisserie or mixer exempt from Texas sales tax as manufacturing equipment?

Plain-English summary

A business asked the Comptroller whether a table whose sole purpose is to support an electric rotisserie or mixer would be exempt from sales and use tax as manufacturing equipment.

The answer: taxable. The Comptroller explained that House Bill 1855, effective October 1, 1997, limited the manufacturing exemption to tangible personal property used directly in the manufacturing process that itself makes or causes a chemical or physical change in the product being made for sale (or in an intermediate/preliminary product that becomes part of it). Being merely "necessary and essential" to the process, and used during it, is no longer enough on its own to qualify — the exemption covers the qualifying machinery/equipment itself plus its components, repair parts, and accessories (an accessory being a machine fixture that causes the machinery to operate in a specialized way).

A table that only supports other equipment (like a rotisserie or mixer) doesn't itself cause a chemical or physical change in the product, so it doesn't qualify. The letter also notes the pre-1997 rule for comparison: back then, a preparation table on which the product was actually assembled could be treated as qualifying manufacturing equipment — but a table that merely held other processing equipment never qualified, even under the older, more generous standard.

What this means for you

Restaurants and food-manufacturing operations buying support equipment

A support table, counter, or similar fixture whose only role is to hold another piece of equipment (a mixer, rotisserie, etc.) is taxable — it doesn't get to borrow the exempt status of the equipment it supports. If your table is instead the surface where the product itself is actually assembled/prepared, that's a different, more favorable fact pattern worth analyzing separately.

Accountants and tax professionals

This letter is a clean illustration of the post-HB 1855 (1997) manufacturing exemption standard: "necessary and essential" is no longer sufficient; the equipment must itself directly cause the qualifying chemical or physical change. Useful for classifying ancillary equipment like tables, stands, and platforms.

Common questions

Q: Is a table that only supports a mixer or rotisserie exempt as manufacturing equipment?
A: No, per this letter — it's taxable because it doesn't itself cause a chemical or physical change in the product.

Q: Would a table where the product is actually assembled be treated differently?
A: Under the pre-1997 standard mentioned in this letter, such a table could qualify; the letter doesn't confirm whether that would still hold post-HB 1855, since it wasn't the fact pattern asked about.

Q: What changed in 1997?
A: House Bill 1855 (effective October 1, 1997) narrowed the manufacturing exemption to property that itself directly causes a chemical or physical change in the product — being merely necessary/essential to the process is no longer enough.

Citations and references

Statutes and rules:

• House Bill 1855, 75th Legislature (eff. 10/01/1997) (narrowed the manufacturing exemption to property directly causing a chemical or physical change in the product)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9810948L

Original ruling text

October 29, 1998

Dear Ms. **:

Thank you for your letter dated October 19, 1998, concerning the taxability of
restaurant support equipment.

You specifically ask, would a table whose sole purpose is to support an
electric rotisserie or mixer be subject to sales and use tax?

Response. House Bill 1855, effective October 1, 1997, limits the exemption for
tangible personal property used in the manufacturing process to property used
directly in the process and that makes or causes a chemical or physical change
in the product being manufactured for sale or in an intermediate or preliminary
product that becomes a part of the product manufactured for sale. Exemptions
are not granted to equipment solely because it is necessary and essential and
used during the manufacturing process. The exemption includes components,
repair parts and accessories for qualifying machinery or equipment. An
accessory is a machine fixture which causes the machinery to operate in a
specialized way.

The table that you mention is taxable. You may wish to submit a list of other
"support equipment" for my review. Prior to the law change, preparation tables
where the product was actually assembled was considered qualifying
manufacturing equipment. This exemption did not apply to tables that held
other processing equipment.

This opinion is based on the facts presented. Different facts though similar,
may result in different answers.

If you have any questions or need more information, you may call me toll free
at 1-800-531-5441, ext. 5-0613. The direct line is 512/475-0613. You may also
write to Tax Policy Division, Comptroller of Public Accounts.

Sincerely,

Kevin Koller
Tax Policy Division