copy of tax by item

7/24/2019 Copy of Tax by Item

1/18

TX STATUTE OF LIMITATIONS: 4 YEARS Tax Status Type Category 800-252-5555 RIA Authority Other-State Rate 6.25% Other2

1 5% test See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.356 Real property service 3.356 2) When nontaxable unrelated services and taxable services are sold

or purchased for asinglecharge and theportion relatingto taxableservices

representsmorethan 5.0% of thetotal charge, the totalchargeis presumed

to betaxable

1.1 Acidize a well Non-Taxable Service Pipeline Services 22,135 Real Property Services 151.3111(a Acidize a well-8706L0840C12 Down-hole taxable services are only

rendered nontaxablewhen done to facilitate jobssuch as: acidizing,

fracturing, perforatingcasing, squeezejob work over, repair to casingstring

or completion services.

Acidizea well-8502L0638E03 12. If awell iskilled so thatthe

casingcan be repaired or theformation fractured or acidized ,

thecharge for killingthe wellis nottaxable

2 Accounts payable services See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 200008616R(1) Data processing services- It specifically includes word

processing, payrolland businessaccounting

3 Accounts receivable service See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 200008616R(1) Data processing services- It specifically includes word


4 Acetylene gas Taxable Item Fuel-gasses 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless

specificallyexempted fromtaxation.RIA

7606L0025B10 ose itemssuch as oxygen and methane-argon

used in alaboratoryfor taxablepurposeswould besubject to the

tax. If itcan be determined thata portion of theoxygen and

methane-argon wasused in an exemptmanner, such as becoming

an ingredient

5 Actuators Taxable Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


6 Ad valorem tax reimbursement See Explanation Service Real Property 21,190 Overview of the Sales and Use Tax Applicability 9408L1320D12 9408L1320D12 Property tax reimbursement is not included in the taxable

salesprice of equipmentrentals onlywhen (1) separatelystated and clearlyidentified on theinvoiceand (2) reimbursementis for thepropertytax paid

on thespecificequipmentbeingleased ...

contractor invoice.

7 Admissions to events See Explanation Fee Amusement Services 21,410 Admissions and Entertainment 3.298. Amusement Services. 3.298 (g) Exemptions (1) Sales tax is not due on the sale of an amusement

serviceif theservice isprovided exclusively:(A) bya nonprofitorganization

3.298 (g) Exemptions(1) Sales taxis notdue on thesale of an

amusementserviceif theserviceis provided exclusively:(C) by

an educational, religious, law enforcement, or charitable

association

8 Advertising See Explanation Service Advertising 21,420 Advertising 3.321. Advertising Agencies 3.321(a)(5) nontangible services: account supervision; account service;

creativeconcept development;consultation service;supervision;public

relations;setting up pressconferences;writingcopyfor use in anymedium;

mediaplacement, advertisingtime, and space chargesto client;market

research individualized for oneclient; postageor freightcharges occurring

after thesale; residuals;retainers;commissionsor fees granted or allowed

bysuppliersor media;media placementfees

8908L0958G05 Your chargesfor leasingadvertisingspace on

your billboardsaren'ttaxable.

9 Aerial patrolling See Explanation Service Testing 22,040 Information Services 9711963L (4) 9711963L 4. Inspection is a non-taxable service. 8908L0952C04 meter reading services, your company is

providingtaxabledata processingservices.

10 Aerial surveying/Photography Non-Taxable Service Surveying Services 22,135. Real Property Services 3.356(9) Surveyingof realproperty 7705T0068A06 SectionsAand B arenon-taxableservices.. (a)

Topographicmaps..(b) Profilemaps

7705T0068A06 SectionsC, D are taxabletangiblepersonal.. (c)

Obliquephotographs..(d) Mosaicmaps

11 Affiliated company transactions See Explanation Service Other 21,260 Intercompany Transactions 3.331 3.331(1) Sales or use tax is not due when an interest in tangible personal

propertyissold to a purchaser who, either beforeor after the sale, ownsa

jointor undivided interestin thetangiblepersonalpropertywith the seller.

3.331 Transfersof common interestsin tangiblepersonal

property-intercorporateservices

12 Air conditioning maintenance See Explanation Service Building Services 22,140. Repair, Maintenance, and Installation Services 3.291 Contractors 200010825L Acharge to repair a central air conditioning system in a non-

residential(commercial) buildingis taxable

200202797L Thelabor for new construction and to repair and

remodelcentralheatingand air conditioningunitson existing

residentialreal propertyisnot taxable. Thelump-sumcharge to

thecustomer isnottaxable

13 Air preheaters See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


14 Air sample analysis See Explanation Service Testing 22,040 Information Services 9205L1169D01 9205L1169D01 The following services provided by your company are not

taxable:On-SiteAbatement Air Monitoring,15 Air sample testing See Explanation Service Testing 22,040 Information Services 3.342 Information Services 3.342(a)(5)(B) Any sale of information primarily derived from laboratory,

medical, or exploratorytestingor experimentation or any similar method of

directscientificobservation of physicalphenomenaisnot subjectto tax.

9212L1226E02 3. Response:Hydrostatictestingis anontaxable

service.

16 Alarm systems, security Taxable Service Security Services 22,145 Security Services 9907563L charges for monitoring security systems are subject to tax. 3.333(k)(3) persons who install electronic access control

devices..Although nottaxable asa securityservice, the

installation of such a devicein an existingnonresidentialreal

propertyimprovementmay betaxable asnonresidentialreal

propertyrepair, remodelingor restoration. See3.357

16.1 Alcohol / Liquor Taxable Item Food 21,660 Food and Grocery Sales 3.293 Food; food products; meals; food service. 3.293 (c) Taxable sales. The following are subject to sales tax: (4)sales of

beer, wine, and other alcoholicbeveragesunlesssubjectto mixed beverage

grossreceiptstax

17 All-terrain vehicles Taxable Item Motor Vehicle 21,190 Overview of the Sales and Use Tax Applicability 9405L1298C01 9405L1298C01 taxable except "when they purchase all-terrain vehicles for

usein agricultural"

3.88(b)(1) Off-road vehiclesare subjectto the limited salesand

usetax under theTaxCode, Chapter 151.

18 Amusement services See Explanation Fee Amusement Services 21,410 Admissions and Entertainment 3.298. Amusement Services. 9510L1378F02 The fee by the Mariachis performers is not taxable to the

corporation becausethe Mariachisare simplycharginga feefor their

performancerather than an admission.

19 Analysis (Testing) See Explanation Service Testing 22,040 Information Services 3.342 Information Services 3.342(a)(5)(B) Any sale of information primarily derived from laboratory,




service.

20 Appraisals See Explanation Service Insurance Services 22,050. Insurance Services 9103L1094B07 and 8710L0843C07 8710L0843C07 Real estate appraisals to determine the property value for

thepurpose of obtaininga loan, sellingthepropertyor taxpurposesare not

taxable.

8710L0843C07 Realestate appraisalsto valuepropertyfor

insurancecoverageare taxable

20.1 Architectural Services See Explanation Service Professional Services 22,135 Real Property Services 3.356(a)(4) 200904584L

Architects and engineersprovidea nontaxableprofessionalservicewhen

producingoriginalplansand copies of theoriginalplansfor clients. An

architect or engineer doesnotcollect salestax on separatelystated

chargesfor copiesof blueprintsor blueline printsprovided to clients

per client/architect/engineer agreements

Tex. Admin. Code 3.356(a)(4) .Notincluded are theaddition

of sprinkler systems, retainingwalls, ponds, pools or fences, or

other construction activitiesor servicesprovided bylandscape

designersor landscapearchitectssuch as consultation, research,

preparation of generalor specificdesign or detailplans, studies,

specifications, or supervision, or anyother professionalservices

or functionswithin thedefinition of thepracticeof engineeringor

architecture. Landscapingservicesperformed bylandscape

designersor landscapearchitectsare taxable.

21 Arrestors See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


22 As-built title surveying Taxable Service Surveying Services 22,135. Real Property Services 3.356(9) Surveyingof realproperty 1 51 .0 04 8( a) (6 ) A s- bu il t ti tl e su rv eyi ng 8 90 1T 09 20 C1 0- 3 A NS WE R: T he s ur ve yi ng o f b ou nd ar ie s of a

right-of- wayare taxable. Asurveywhich determinesthe actual

location of autilityor structureto be builtwithin aright-of-wayis

nottaxable.

23 Asbestos abatement See Explanation Service Waste Services 22,135. Real Property Services Texas Policy Letter Ruling No. 9506180L, 06/07/1995 9506180L Asbestos qualifies as hazardous waste and the removal and

disposalof hazardouswasteis nottaxable. (mustbe separatelystated).

9610933LA separatelystated chargefor air qualitymonitoring

performed duringan asbestosabatementproject isnot taxable.

24 Asbestos analysis Non-Taxable Service Testing 22,040 Information Services 3.342 Information Services 3.342(a)(5)(B) Any sale of information primarily derived from laboratory,



9506180LAsbestos qualifiesashazardous wasteand theremoval

and disposalof hazardouswasteis nottaxable. (mustbe

separatelystated).

25 Asbestos testing Non-Taxable Service Testing 22,040 Information Services 3.342 Information Services 3.342(a)(5)(B) Any sale of information primarily derived from laboratory,



9506180LAsbestos qualifiesashazardous wasteand theremoval

and disposalof hazardouswasteis nottaxable. (mustbe

separatelystated).

26 Ash disposal system See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


26.1 Asphalt/Concrete Repair Taxable Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 9206H1181B01 The repair and restoration of non-residential realty is a

taxableservice.

200010808Lhere isno salestax on labor performed bya

plumber installingplumbingand fixturesto newstructures(new

construction..The lump sumcharge to thecustomer isnot

taxable)


2/18


27 Attorney fees Non-Taxable Service Professional Services 22,120 Professional services 8711A0844A08 8711A0844A08 The services of a lawyer are not taxable services under

chapter 151 of theTax

Codeunlessthe comptroller determinesthatthe lawyer isnot providinglegal

servicesand isactingsolelyas adebt collector.

22,120 Professionalservices,such asthose rendered by

lawyers, doctors, and accountantsare notspecificallyincluded in

thelist of servicesthatare subjectto tax.RIA

28 Audiograms Non-Taxable Service Testing 22,040 Information Services 3.342 Information Services 3.342(a)(5)(B) Any sale of information primarily derived from laboratory,



9711963L4. Inspection isa non-taxableservice.

29 Auditing services Non-Taxable Service Professional Services 22,120 Professional services 9412P1330D08 9412P1330D08 Turning to the matter of whether these charges (for

actuarialservices) escapetaxation byvirtueof Rule3.355(i)(2), theTax

Division submitstheydo notbecause these auditserviceswere not

purchased "for asinglecharge,"

200008616R(1) Data processing- It specificallyincludes...

payrolland businessaccounting

30.21 Automobile repairs See Explanation Service Motor Vehicle 21,820 Motor Vehicles 3.29 200702943L labor to repair a motor vehicle or its components is not subject

to tax.

200702943LIf you separatethe chargefor theparts and

installation labor on thecustomer'sbill, you mustcharge taxon

theparts.

31 Automobile storage Taxable Service Motor Vehicle 21,820 Motor Vehicles 151.0101(a) 201304708H 4. Motor vehicle parking and storage services are defined

astaxable services. TEX. TAX CODEANN. Section 151.0101

32 B2B (business to business) See Explanation Item Personal Property 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." 151.410 A seller shall compute the sales tax imposed by Subchapter C of

thischapter to bepaid to thecomptroller bymultiplyingthepercentage rateof thesales taxtimes thetotal receiptsof the seller fromall salesof taxable

tangiblepersonal propertyand of taxableservices.

Tex. TaxCode Ann. 151.005 "Sale"or "purchase."(1) a

transfer of titleor possession of tangible personalproperty;

33 Bad check lists 80% Taxable Service Information Services 22,040 Information Services 3.342 Information Services 200005251L General database research is subject to sales tax as the

provision of information services. Rule 3.342

200211591LRule 3.342(a)(5)(B) exempts. ..derived viadirect

scientificobservation of physicalphenomena.

33.1 Backfill dirt See Explanation Service Landscaping 22,135 Real Property Services 3.356 Real property service. 9212L1218C01 Labor to backfill the hole is not taxable ... because it is not

partof any taxablerepair or remodelingjob and isnot considered taxable

landscaping.

9212L1218C01 Response:The labor to excavate contaminated

soilisnot taxableif theservice provider leavesthe soilon the

customerspremises.

33.2 Background check 80% Taxable Service Information Services 22,040 Information Services 3.342 Information Services 200005251L General database research is subject to sales tax as the


34 Baghouses See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


35 Baling hay Non-Taxable Service Landscaping 22,135 Real Property Services 3.356 Real property service. 9208L1190D12 However mowing and baling hay is not considered lawn

and yard maintenanceand isnottaxableas a realpropertyservice.

36 Bandages See Explanation Item Personal Property 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." 151.410 A seller shall compute the sales tax imposed by Subchapter C of

thischapter to bepaid to thecomptroller bymultiplyingthepercentage rate

of thesales taxtimes thetotal receiptsof the seller fromall salesof taxable




36.1 First Aid-Bandages See Explanation Item Personal Property 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." 151.410 Aseller shall compute the sales tax imposed by Subchapter C of






37 Banquet tickets, Chamber of Commerce See Explanation Item Food 21,660 Food and Grocery Sales 9201L1157D01 9201L1157D01 1) Charges for lunches at monthly membership meetings.

Nontaxablewhen purchased bythe Chamber..Taxablewhen the lunches

arepaid for bythe individualmembers.

9201L1157D01 3) Ticketsfor attendanceat an annual banquet

.RESPONSE: If partof theticketprice coversa chargefor food

served ata restaurant, hotelor similar place of business, or

catered byan outsideparty, thatportion of theticketis taxable.

37.1 Bartender Non-Taxable Service Personal Services 21,410. Admissions and Entertainment 09061146 Real Property Rent 09061146 Real Property Rent charges for providing a bartender are not

taxable. Separatelystated chargesfor janitorialservices aretaxable.

38 Battery recycling fee Non-Taxable Service Motor Vehicle 21,820 Motor Vehicles 151.0101(a) 200208438L The amount of money you collect from your customers for

the battery salesfee isnotsubjectto the salestax.

200208438LThe amountof moneyyou collectfrom your

customersfor tirerecycling and theautomotiveoil salesfee areboth subjectto thesales tax.

38.1 Bee removal See Explanation Service Pest Control 22,135 Real Property Services 200009728L 200009728L Therefore, if you remove bees from under eaves, porch, attic,

etc, you should collectsales taxon your charge.

200009728LIf you remove bees from aranch or farmfield or

pasture, salestaxis notdue.

39 Bill consolidation See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 200008616R(1) Data processing services- It specifically includes word


40 Bill preparation services See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 200008616R(1) Data processing services- It specifically includes word


41 Bird nuisance control Taxable Service Pest Control 22,135 Real Property Services 3.356 Real property service 3.356. Real property service.a) 8 ) Structural pest control services- Activities

performed for thepurpose of identifying, preventing, controlling, or

eliminating, byuse of chemicalor mechanicalmeans

41.1 Blue Cross - Third Party Administrators Non-Taxable Service Insurance Services 22,050. Insurance Services 3.355 (b) and (g) and 3.330(a). 3. 355 (b) These services performed . .for a third-party administrator . .under

aself-insured plan arenottaxable.

9902245LThe processingof insuranceclaimsis notsubject to

Texassales or usetax under thedata processingservicesSee

Rule3.330(a).

42 Boilers See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


43 Bond rating information See Explanation Service Information Services 22,040 Information Services 3.342 Information Services 200005251L General database research is subject to sales tax as the




44 Bonus pay See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 9206H1181B01 The repair and restoration of non-residential realty is a

taxableservice.




taxable)

45 Bottled water Non-Taxable Item Food 21,660 Food and Grocery Sales 3.293 Food; food products; meals; food service. 3.318 (f) Water. The sales tax law specifically exempts the sale of water,

includingspringwater, sparklingwater, or mineralwater, from salesor use

tax.

3.318 (f) Flavored water (carbonated or non-carbonated) isa

softdrinkand istaxable.

45.1 Boring, Excavation, Backhoe, Digging See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 200103164H The Administrative Hearings Section will agree to delete for

the"directional bore"because thenature of such workrelatesto new

construction.

9211T1205G08 AreTaxpayer'schargersto digholes taxableif

thetaxpayer doesnot makethe repairs?The chargeto dig the

holeis nottaxable.

46 Boundaries, confirming property See Explanation Service Surveying Services 22,135. Real Property Services 3.356(9) Surveyingof realproperty 8901T0920C10 (2) determiningboundariesof realpropertywhich includes

lot surveying are taxable. Examplesincludeboundaryrecovery, lot

surveying, title surveying, right-of-way surveying, residential surveying

and as-builttitle surveying.

8901T0920C10 (3) Asurveywhich determinesthe actual


nottaxable.

47 Boundary recovery Taxable Service Surveying Services 22,135. Real Property Services 3.356(9) Surveyingof realproperty 8901T0920C10 (2) determiningboundariesof realpropertywhich includes






nottaxable.

48 Bowl mill grinder See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


49 Bracing a pole See Explanation Service Pole Services NA NA

50 Bracing plants Taxable Service Landscaping 22,135 Real Property Services 3.356 Real property service. 200105212L Landscaping services includes planting , transplanting,

pruning, bracing , spraying, fertilizing, mowing, trimming, watering, tree

planting

51 Breakers See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


52 Breathing air cylinders Non-Taxable Item Fuel-gasses 21,560. Containers, Wrappers, Packaging and Labels 151.315 Decision No. 11,972 "that the air we breathe, even if packaged in some

form, oughtnot besubjected to salestax."

8209L0472B01 Is cylinder rent taxable-"No, nottaxable when

rented full".

53 Breathing apparatus See Explanation Item Fuel-gasses 21,560. Containers, Wrappers, Packaging and Labels 151.315 Decision No. 11,972 "that the air we breathe, even if packaged in some

form, oughtnot besubjected to salestax."

8209L0472B01 Is cylinder rent taxable-"No, nottaxable when

rented full".

54 Brush control/right of way clearing See Explanation Service Landscaping 22,135 Real Property Services 3.356 Real property service. 9104L1099F04 The brush control services along the pipeline right of way

arenot taxable.

9410L1329G03 Mowingor trimmingthatis performed on

privateor commercialyardsor lawnsis a taxableservice.

However, mowingor cuttingto power line rights-of-way,

pipeline rights-of-wayis nottaxable.

55 Building cleaning Taxable Service Building Services 22,135. Real Property Services 151.0048 Real property service. 151.0048 (4) building or grounds cleaning, janitorial, or custodial services;

56 Building &grounds cleaning See Explanation Service Building Services 22,135. Real Property Services 151.0048 Real property service. 151.0048 (4) building or grounds cleaning, janitorial, or custodial services;

56.1 Bus Charter See Explanation Fee Amusement Services 21,410 Admissions and Entertainment 3.298. Amusement Services. 9004L1100G12 Bus tours along a scenic route are taxable as amusement

services, butmore generaltravelby busis not.

3.298(a)(1)(F) (v) tour trainsand buses, whoseprimary

purposeisto show touristsightsalonga routeas opposed to

regular transportation;


3/18


57 Buzzard guards Taxable Item Pest Control 22,135 Real Property Services 3.356 Real property service 3.356. Real property service.a) 8) Structural pest control services- Activities

performed for thepurpose of identifying, preventing, controlling, or

eliminating, byuse of chemicalor mechanicalmeans

58 Cable conversion See Explanation Service Pole Services NA NA

59 Cable replacement See Explanation Service Pole Services NA NA

60 Cable/lines added See Explanation Service Pole Services NA NA

61 Cable/wire splicing See Explanation Service Pole Services NA NA

61.1 Calibration Taxable Service Repairs/New Construction 22,135 Real Property Services 3.357. 9310H1265E01 If the calibration of Petitioner's meters is the maintenance

of realpropertyunder Rule3.357(a)(3), then thecalibration workisa non-

taxableservice. To qualifyasmaintenanceunder theRule, thework mustbe

scheduled and periodic. To beperiodic, thework mustbe performed at

essentiallyeven intervals.

9310H1265E01 Meters aretangiblepersonalproperty. Section

151.009. Therepair or maintenanceof tangible personalproperty

isa taxableserviceunder Section 151.0101 (a) (5).

61.2 Camera Operator See Explanation Service Video Services 21,840. Photography 151.318 (a)(2) 9105L1115A12 Response: The fee is not taxable for services provided by a

free-lancephotographer who operatesa video cameraor other such motion

picturecamera.

9105L1115A12 However, thefee for a free-lancephotographer

who operatesa stillpicturecamera istaxable.

62 Capacitor banks See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


63 Carbon dioxide removal equipment See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.007 10215576 Sales Tax treater charges as part of sales price Response: Your

Company'spaymentfor thetreater serviceand the thermaloxidizer service

becomea componentpartof the salesprice of thenaturalgas thatyour

companysellsunlessyour companyreceives aproperlycompleted resaleorexemption certificatein lieu of the salestax. [email protected]

8/30/10

Salesof tangiblepersonal propertyaregenerallypresumed

taxable, unlessspecificallyexempted from taxation.RIA

63.1 Car Washes Non-Taxable Service Motor Vehicle 21,820 Motor Vehicles 151.0101(a) 8506L0642B11 Car washing (by hand) - is this taxable? Not taxable 200005360L Receipts derived from a coin operated car wash

and vacuummachineare notsubjectto salestax.

64 Carpet cleaning Taxable Service Building Services 22,135. Real Property Services 151.0048 Real property service. 151.0048 (4) building or grounds cleaning, janitorial, or custodial services;

65 Carpet installation and repair Taxable Service Repairs/New Construction 22,135 Real Property Services 151.0048 200309239L Services to install a new carpet pad, reinstall the carpet, ...in

nonresidentialpropertyare taxableservices

65.1 Carport-installation (See Portable Bldg) See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 9803226L carports-Response: When you incorporatea trailer into real

property, you area developer. If you operateunder lump-sumcontracts

(thatdo not separatematerialand labor charges), you are considered the

consumer of allthe itemsthat you buyto do thejob

200605556R Asale of amobileoffice isa taxablesaleof

tangiblepersonal property.

66 Cash discounts Non-Taxable Fee Other 22,360. Discounts Article 20.01(L)(3)(a)

7705T0067D02 Article20.01(L)(3)(a) statesthatsales pricedoes not

include cash discountsallowed on sales.

66.1 Casino Services Non-Taxable Fee Amusement Services 21,410 Admissions and Entertainment 3.298. Amusement Services. 9805620L Operation of a Casino environment to "practice gambling"-

instructionalservices

66.2 Cathodic Protection Taxable Service Repairs/New Construction 22,135 Real Property Services Comptroller's Hearings Decisions Nos. 28,327 and 30,569 9506L1351G08 the addition of cathodic protection systems to existing

pipelineswas taxablerepair and remodelingof real property.

66.3 Caterer (food) See Explanation Item Food 21,660 Food and Grocery Sales 3.293 Food; food products; meals; food service. 3.293(k) A caterer is aseller of prepared food and beverages and must

collectsalestax on allchargesbilled in connection with thesale of taxable

meals.

200608117LBakery itemsare exemptfromtax unlesstheyare

sold on aplate, in abowl, or with other eatingutensils.

67 Catalog purchases See Explanation Item Personal Property 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." 151.410 A seller shall compute the sales tax imposed by Subchapter C of






68 CCH service See Explanation Service Information Services 22,040 Information Services 3.342 Information Services 200005251L General database research is subject to sales tax as the




69 Ceiling cleaning Taxable Service Building Services 22,135. Real Property Services 151.0048 Real property service. 151.0048 (4) building or grounds cleaning, janitorial, or custodial services;

70 Cement Non-Taxable Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 9206H1181B01 The repair and restoration of non-residential realty is a

taxableservice.




taxable)

71 Centerline control staking Non-Taxable Service Surveying Services 22,135. Real Property Services 3.356(9) Surveyingof realproperty 8901T0920C10 (2) determiningboundariesof realpropertywhich includes






nottaxable.

72 Chamber of Commerce banquet tickets See Explanation Item Food 21,310. Nonprofit, Charitable and Religious Transactions 3.322(a)(1) 9201L1157D01 If part of the ticket price covers a charge for food served at

arestaurant, hotelor similar placeof business, or catered by an outside

party, thatportion of theticketis taxable.

Themember entityor prospectivemember entitydoes nothave

to accruesales taxon thepaymentsto theChamber thatare for

themeals attended bychamber membersor prospectivemembers

[email protected]/22/2009

73 Check preparation service See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 200008616R(1) Data processing services- It specifically includes word


74 Chemical feed system See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


75 Chemical spill/pipeline oil clean-up and disposal Non-Taxable Service Waste Services 22,135. Real Property Services 3.324. Oil, gas, and related well service. 8712L0855C05 Oil spill c lean-ups a t the well-site are not taxable. 9205L1170C07 Charges for restoring or remediating lost or

damaged soilare nottaxable.

76 Chimney cleaning Taxable Service Building Services 22,135. Real Property Services 151.0048 Real property service. 151.0048 (4) building or grounds cleaning, janitorial, or custodial services;

76.1 City Road Repairs Exempt Service Repairs/New Construction 22,135 Real Property Services 151.0048 9311L1272A05 Although the installation of the speed bumps is considered

remodelingof nonresidentialrealty (which isataxable service), theCityof

****** isnotrequired to collectsalestax on thecharges billed to citizens

becausea saledid notoccur. The cityis beingreimbursed for remodelingof

publicstreets.

77 Cleaning and drying pipelines Non-Taxable Service Pipeline Services 22,135 Real Property Services 9212L1226E02 9212L1226E02 2. Response: Cleaning and drying apipeline is anontaxable

service.


service.

78 Cleaning restroom Taxable Service Building Services 22,135. Real Property Services 151.0048 Real property service. 151.0048 (4) building or grounds cleaning, janitorial, or custodial services;

79 Coffee service/supplies See Explanation Item Food 21,660 Food and Grocery Sales 151.314(a) 7711L0093A11 Coffee, Coffee/filter combo, Sugar, Creamer-Non-taxable 7711L0093A11 Cups, Stirrers, Spoons, Napkins, Filters-

Taxable

80 Collection service expenses Taxable Service Debt Collection 22,080 Miscellaneous Services 151.0101(a)(8) 9308L1253F13 Debt collection services are taxable in Texas. See 151.0036 200001952L If you separately state the charges for debtors

located in Texasfrom thoselocated out-of-state, you should only

collectTexassales taxon thosechargesfor debtorslocated in

Texas.

81 Collection service fees Taxable Service Debt Collection 22,080 Miscellaneous Services 151.0101(a)(8) 9308L1253F13 Debt collection services are taxable in Texas. See 151.0036 3.354(b)(2) Collection of current credit ...is not subject to tax

under thisrule.

82 Commerce Clearing House service See Explanation Service Information Services 22,040 Information Services 3.342 Information Services 200005251L General database research is subject to sales tax as the




83 Communication equipment Taxable Item Personal Property 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." 151.410 A seller shall compute the sales tax imposed by Subchapter C of






83.1 Compression_natural gas-3rd party See Explanation Service Pipeline Services 22,135 Real Property Services 9909741L Response: If the customer has no control over the compression

unit(i.e., transfer of possession), theessence of thistransaction isto provide

acompression servicefor afee. Thisfee isnot subjectto thesales tax.

9909741LResponse: If acontract to leasegas compressorswas

entered into byCompanyA and it'scustomer, then itis alease. If

thisis aservice to compressgas, then itis nota lease. Rule3.294

Rentaland Leaseof TangiblePersonalProperty contains

definitionsof alease of propertyversusa service. Ihave enclosed

acopy of Rule3.294 for your review.

84 Computer-aided drafting See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 9404L1316E09 However, if the third party works with your taxpayer to

develop (or if the third partyindependentlydevelops) the original

specifications, schematics, etc., as wellas to producetheactual design, the

serviceswould beconsidered professional engineering servicesand would

notbesubjectto tax

9408L1318E11 Drafting is..taxed as dataprocessingservices

when thecomputer is utilized. 80%

85 Computer hardware See Explanation Item Computers-Software 21,190 Overview of the Sales and Use Tax Applicability 3.308(a) 8712R0851C07 Rule 3.308(a)(1) The sale, lease or rental of c omputer

hardware... issubject to thesales and usetax.

8712R0851C07 3.308(a)(4) Salestax isdue on chargesfor labor

or servicesrendered in remodeling, repairing, maintainingor

restoringcomputer hardware. See Rule3.292


4/18


86 C omput er intr us ion de te ction s ervic e S ee Expla na tion S er vic e D ata P roc es sing 2 1, 540 Co mp ute r H ar dw are , S of tw are a nd Se rvic es - 3. 330( a) (1) 200 0086 16R (1) D ata p roc ess ing ser vice s- It s pe cif ic ally inc lud es wor d


87 Computer software See Explanation Item Computers-Software 21,540. Computer Hardware, Software and Services 3.308(b) 8712R0851C07 3.308(b)(2) Sales tax is due on the sale, lease or license of

a computer program.

88 Concrete Taxable Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 9206H1181B01 The repair and restoration of non-residential realty is a

taxableservice.




taxable)

89 Condensate equipment See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


90 Condensers See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


91 Confirming property boundaries Taxable Service Surveying Services 22,135. Real Property Services 3.356(9) Surveyingof realproperty 8901T0920C10 (2) determiningboundariesof realpropertywhich includes






nottaxable.

92 Construction debris disposal Taxable Service Waste Services 22,135. Real Property Services 151.0048 Real property service. 200506292H Taxable real property services include the removal or

collection of garbage, rubbish or other solid waste. Section 151.0048( a)(3)

9207L1182E08 A chargefor collection and disposal of the

debris/pipeis ordinarilytaxable.

96 Construction See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors See Contract taxability

93 Construction site cleanup Taxable Service Building Services 22,135. Real Property Services 151.0048 Real property service. 151.0048 (4) building or grounds cleaning, janitorial, or custodial services;(taxable)

94 Construction site landscaping See Explanation Service Landscaping 22,135. Real Property Services 3.356 Real property service. 200205063L Hardscaping, i.e., the building of retaining walls, dams, etc.,

isconsidered newconstruction . Taxis dueon materialsbutnot on labor.

95 Consulting services See Explanation Service Professional Services 22,120 Professional services 200009737L 200009737L Unrelated consulting services which are the expert or

professionalopinionsof the consultantare nottaxablewhen they are

separatelystated and notconnected in anyway to thesaleof a taxableitem.

For example, separatelystated chargesfor generalbusinessconsultingor

professionalservices, such asmanagementconsulting, businessissue

identification and policydecisions, projectmanagement, publicrelationsand

taxconsultingwhich arenot related to thesoftwarebeingsold would be

considered nontaxableconsultingservices

96 Contract taxability See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors See Decision Matrix 201311783R (b)(4)(A) A contract to sell a prefabricated

building or a ready- built home isconsidered acontract for an

improvementto realproperty when the seller is

required to build , transport, and affixthestructure to a

permanentsite.

97 Control room equipment See Explanation Item Manufacturing 21,190 O verview of t he Sales and Use Tax Applicability 151.005 "Sale" or " purchase." Sales of t angible personal property are generally presumed taxable, u nless


97.1 Conversion-Abandonment See Explanation Service Repairs/New Construction 22,135 Real Property Services 10154893, Plumbing/Electrical Services..residential installation.. In a lump

sumcontract(i.e. labor and materialsare asinglecharge) the contractor is

considered theconsumer of thematerialsand payssalestax atthe timeof

purchase. No sales taxis charged to thecustomer in alump sumcontract.

3.291(b)(3). [email protected]/23/10

09211791 SalesTax Theresult isthat your firmowes thetax to

thetaxableservice provider if itbuysa taxableserviceeven if the

serviceisperformed on acustomersproperty. By thesame

token, thecustomer owesthe taxif theypaythe taxableservice

provider directly. If your firmchoosesto reimbursethe customer

for thetotalcost of therepair, itmustalso reimbursethem for the

taxthey paid to theservice provider.

98 Cooling water system See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


99 Copiers Taxable Service Rental 21,280. Leases and Rentals 151.005 "Sale" or "purchase." 151.410 A seller shall compute the sales tax imposed by Subchapter C of

thischapter to bepaid to thecomptroller bymultiplyingthepercentage rateof thesales taxtimes thetotal receiptsof the seller fromall salesof taxable




100 Copies Taxable Item Personal Property 21,860. P ublishing and Printing 3.312(1) 3.312(1)Sales tax is due on the total charge for producing multiple copies of

printed materialregardlessof the typeof equipmentused in the

reproduction.

100.1 Copywriting See Explanation Service Advertising 21,420 Advertising 3.321. Advertising Agencies 9508L1366G11 Subsection (a)(5) of Rule 3.321 Therefore, if the copy

becomesa partof employee-fabricated property, taxisdue on theentire

charge, includingseparately-stated chargesfor copywriting, for theitem.

101 Copy paper Taxable Item Personal Property 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." 151.410 A seller shall compute the sales tax imposed by Subchapter C of






102 Courier services See Explanation Service Transportation 22,440. Shipping, Delivery, Transportation, Insurance and Handling Charges 3.303 3.303(a) The sales tax applies to all transportation or delivery charges to a

customer when ataxableitemis sold

3.303(b) Athird partycarrier (separatelegalentity) willnotbe

responsiblefor collectingor remittingtax aslong asthe third

partycarrier onlyprovidestransportation and doesnot sellthe

taxableitembeingdelivered.

103 Court reporting services See Explanation Service Information Services 22,080 Miscellaneous Services 151.353 (a) 151.353 (a) Court reporting services ...are exempted from the taxes

imposed bythischapter

104 Crane service/rental See Explanation Service Rental 21,280. Leases and Rentals 3.294 (c 200307998L Your client has entered into a lump-sum agreement for crane

services, i.e., thecranecompany furnishesa crane and an operator.

Based on thisinformation, no taxwillbe dueon the "craneservices" Rule

3.294 (c)

105 Credit reporting services See Explanation Service Information Services 22,040 Information Services Section 3.343. Credit Reporting Services. Tex. TaxCode Ann. 151.0101 Taxableservices(7) creditreporting

services

106 Crossarm additions See Explanation Service Pole Services NA NA

107 Crossarm replacement See Explanation Service Pole Services NA NA

108 Crushers See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


109 Current account collections Non-Taxable Service Debt Collection 22,080 Miscellaneous Services 151.0101(a)(8) 3.354(b)(2) Collection of current credit and real estate accounts, including

mortgagepaymentsand rental payments, isnot subjectto tax

110 Custodial services Taxable Service Building Services 22,135. Real Property Services 151.0048 Real property service. 151.0048 (4) building or grounds cleaning, janitorial, or custodial services;

110.1 Customer reimbursement-plumbing-customer reteSee Explanation Service Repairs/New Construction 22,135 Real Property Services 10022871, Customer Reimbursements for Plumbing Repair Your payment

to theplumber simplyreducesthe amountpayablefromyour customer.

[email protected]/19/10








111 Cylinder demurrage See Explanation Rental Fuel-gasses 21,560. Containers, Wrappers, Packaging and Labels 8209L0472B01 8209L0472B01 Is cylinder rent taxable-"No, not taxable when rented full".151.322(a) Thefollowingare exempted fromthe taxesimposed

bythischapter: (1) acontainer sold with itscontents if thesales

priceof the contentsisnot taxed under thischapter; (2) a

nonreturnablecontainer sold withoutcontentsto a person who

fillsthecontainer and sellsthecontentsand the container

together;and (3) a returnablecontainer sold with itscontentsor

resold for refilling.

112 Cylinder rentals/purchases See Explanation Rental Fuel-gasses 21,560. Containers, Wrappers, Packaging and Labels 8209L0472B01 8209L0472B01 Is cylinder rent taxable-"No, not taxable when rented full".151.322(a) Thefollowingare exempted fromthe taxesimposed





together;and (3) a returnablecontainer sold with itscontentsor

resold for refilling.

113 Data conversion See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 200008616R Data conversion is considered a data processing service.

Such servicesare taxableas explained in Rule3.330

9009L1045A01 Contractprogrammingis nottaxableif the

customer retainsthe rightsto theprogramswritten.

114 Data processing See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 200008616R(1) Data processing services- It specifically includes word


8801L0855D02 You should collecttax on chargesfor filingthe

payrolltaxreturns, preparingW-2 formsand computingand

preparingpayrollchecks.


5/18


115 Data recovery See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 9212L1214G02 Charges for labor or services rendered when performing

datarecoveryare taxable. Rule3.330, DataProcSer

200008616R(1) Data processingservices- Itspecificallyincludes

word processing, payrolland businessaccounting

116 Data storage See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 9503L1338G13 Data processing services include computerized data

storage. SeeRule3.330(a)

200008616R(1) Data processingservices- Itspecificallyincludes

word processing, payrolland businessaccounting

117 Debt collection services Taxable Service Debt Collection 22,080 Miscellaneous Services 151.0101(a)(8) 9308L1253F13 Debt collection services are taxable in Texas. See 151.0036 200001952L If you separately state the charges for debtors

located in Texasfrom thoselocated out-of-state, you should only

collectTexassales taxon thosechargesfor debtorslocated in

Texas.

118 Deluge system See Explanation Service Safety Items 22,135 Real Property Services 3.357(3) 9206H1181B01 maintenance of realty is not a taxable service. 3.357.(3)

Maintenanceon realproperty- Allscheduled periodicwork

Chargesfor scheduled and periodicmaintenanceof real property

(i.e. fire hydrants, installed sprinkler systems, transformer deluge

systems, etc.)

118.1 Demolition-Dismantling See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.356 9406L1306D01 4. Only when an entire structure is demolished ... will it

qualifyanontaxabledemolition

118.11 Dismantling-see demolition See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.356 9406L1306D01 4. Only when an entire structure is demolished ... will it

qualifyanontaxabledemolition

119 Demurrage See Explanation Rental Fuel-gasses 21,560. Containers, Wrappers, Packaging and Labels 8209L0472B01 8209L0472B01 Is cylinder rent taxable-"No, not taxable when rented full".151.322(a) Thefollowingare exempted fromthe taxesimposed





together;and (3) a returnablecontainer sold with itscontentsorresold for refilling.

120 Deposits Non-Taxable Fee Other 22,300. Tax Base 3.301(d) regarding cash discounts 9909680L Sales tax is not due on a refundable security deposit that you

hold fromyour customer.

121 Detective services Taxable Service Security Services 22,145 Security Services 151.0101(a)(14 9512L1384G05 background investigations, and other taxable items 9108L1123G11 You are correct that the private investigator is

notrequired to collecttaxon the described services.(serve,

unarmed, supoenas) Theseare "unrelated"services, within the

meaningof Rule3.333 (g)

122 Determining property boundaries Taxable Service Surveying Services 22,135. R eal Property Services 3.356(9) Surveyingof realproperty 8901T0920C10 (2) determiningboundariesof realpropertywhich includes






nottaxable.

123 Dewatering Non-Taxable Service Pipeline Services 22,135 Real Property Services 9212L1226E02 Response: D ewatering a pipeline is a nontaxable service.

Thecharge to theclient'scustomer isnot taxablewhether thecharge for

dewateringislump sumor separated.

9212L1226E02 In someinstancesthe dewatering isthe end of

theprocess and cleaningand dryingarenot undertaken. Many

timesonecontractor willdo the fill, test, dewater , and

another willdo thecleaningand drying.

124 Diesel fuel Non-Taxable Item Fuel-gasses 21,810. Motor Fuels.- 151.308(a) 3.290(f) Gasoline, LP gas, diesel, and kerosene are exempt from the sales

tax.

124.1 Digging Holes-Excavation Non-Taxable Service Landscaping 22,135 Real Property Services 3.356 Real property service. 9211T1205G08 Response: The charge to dig the hole is not taxable (Test

holesno repairs)



customerspremises.

125 Directory advertising Non-Taxable Service Advertising 21,420 Advertising 3.321. Advertising Agencies 3.321(a)(5) nontangible services: account supervision; account service;

creativeconcept development;consultation service;supervision;public

relations;setting up pressconferences;writingcopyfor use in anymedium;

mediaplacement, advertisingtime, and space chargesto client;market

research individualized for oneclient; postageor freightcharges occurring

after thesale; residuals;retainers;commissionsor fees granted or allowed

bysuppliersor media;media placementfees

126 Dirt (Fly Ash-Flowable Fill) See Explanation Service Landscaping 22,135 Real Property Services 3.356 Real property service. 8806L0884E01 sales tax is no longer due on the purchase price of

unprocessed sand , dirt, gravel or other similar materials.

9501L1363F08 adding( dumping, spreading, packing, etc.) dirt

and/or rocksto theerroded area...not.. for aesthetic..nottaxable

127 Dirt leveling Taxable Service Landscaping 22,135 Real Property Services 3.356 Real property service. 200207225L The removal of trees and brush to prepare a site for

construction of fences, roadsand other structuresis nottaxable. Other dirt

worksuch asrough gradearound the perimeter of anewfoundation for

drainagepurposesare tasksincluded in newconstruction and arenot taxable

services. Finalgradepreparation of theyard for landscapingbyspreadingor

levelingthe dirton thesite isa taxableserviceexceptwhen purchased bya

contractor or abuilder constructinga newresidence

128 Disinfecting restroom Taxable Service Building Services 22,135. Real Property Services 151.0048 Real property service. 151.0048 (4) building or grounds cleaning, janitorial, or custodial services;

129 Distribution line conversion See Explanation Service Pole Services NA NA

130 Diving services See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 8605L0732C06 The divers are performing anon-taxable service 9711963L 4. Inspection is anon-taxable service.

130.1 Domain Registry See Explanation Service Information Services 22,040 Information Services 200209314L 200209314L Domain name registration and fees are not taxable if

separatelystated.

131 Domestic sewage charges Non-Taxable Service Waste Services 22,135. Real Property Services 3.356 Real property service 3.356 Real Property Services(3)The Term does not include any of the

following:(A) solid or dissolved material in domesticsew age

132 Drafting See Explanation Service Professional Services 22,135 Real Property Services TX TAX PUB: 94-143 Tax is due on the total charge for drawings, blueprints, delineations, and

circuitdesignsand on chargesfor paper and electroniccopiesof these

items.

133 Drinking water Non-Taxable Item Food 21,660 Food and Grocery Sales 3.293 Food; food products; meals; food service. 3.318 (f) Water. The sales tax law specifically exempts the sale of water,

includingspringwater, sparklingwater, or mineralwater, from salesor use

tax.

3.318 (f) Flavored water (carbonated or non-carbonated) isa

softdrinkand istaxable.

134 Drug screening See Explanation Service Testing 22,040 Information Services 3.342 Information Services 3.342(a)(5)(B) Any sale of information primarily derived from laboratory,




135 Drug testing See Explanation Service Testing 22,040 Information Services 3.342 Information Services 3.342(a)(5)(B) Any sale of information primarily derived from laboratory,




136 Dubbing/copying videos Taxable Service Video Services 21,840. Photography 151.318 (a)(2) 9608L1432G11 After the master is completed, you should charge sales taxonlyon thechargefor dubbing, includingthetape(s)

200207261LGenerally, a video photographer is required tocollecttaxon thetotal chargefor video tapingservices(e.g.,

weddings, graduations, etc.).

137 Duct cleaning Taxable Service Building Services 22,135. Real Property Services 151.0048 Real property service. 151.0048 (4) building or grounds cleaning, janitorial, or custodial services;

138 Dues See Explanation Fee Subscriptions 21,520 Club and Membership Dues 3.298(b) 3.298(b) The membership dues, initiation fees, and other assessments

in a privateclubare taxable

200001994Lexemptsamusementservices provided exclusively

byan educational, religious, lawenforcementassociation, or

charitableorganization.

139 E-commerce purchases See Explanation Item Computers-Software 21,540. Computer Hardware, Software and Services 151.01 200209444L e-Book is taxable when e-mailed to purchasers in Texas.

151.010 defines"Taxableitemthe saleor useof a taxableitemin electronic

form

200306993La chargeto createa separateweb pageto view

information aboutan item or to placea photograph of theitem

thattheviewer hasto " click" to accessissubjectto ..taxasa

dataprocessingservice. 20% exemption

140 Early payment discount Non-Taxable Fee Other 22,360. Discounts Article 20.01(L)(3)(a)

7705T0067D02 Article20.01(L)(3)(a) statesthatsales pricedoes not

include cash discountsallowed on sales.

141 Economizer See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


142 Editing data See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 200008616R(1) Data processing services- It specifically includes word


143 Electrical supplies Taxable Item Personal Property 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." 151.410 A seller shall compute the sales tax imposed by Subchapter C of






143.1 Electric Services-Rectifiers (cathodic prot.) Non-Taxable Service Pipeline Services 21,940 Utilities 3.295(c)(4)(D) Tex. Admin. Code 3.295(c) Gas and electricity are exempted from the taxes

imposed bythischapter when sold for:(4) directuse in:(D)electrical

processes, such aselectroplating, electrolysis, and cathodicprotection


6/18


143.2 Electrician See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 10154893, Plumbing/Electrical Services..residential installation.. In a lump

sumcontract(i.e. labor and materialsare asinglecharge) the contractor is

considered theconsumer of thematerialsand payssalestax atthe timeof

purchase. No sales taxis charged to thecustomer in alump sumcontract.

3.291(b)(3). [email protected]/23/10








143.3 Electricity Connection Fees Taxable Service Pipeline Services 21,940 Utilities 9212T1210A01 9212T1210A01 The connect fee for setting up an account and the

reconnectfee to reinstateservicethat wasdiscontinued arepart of thecost

of providingthe electricity.

9212T1210A01 #5 Thefees charged to themembersare partof

thecost of providingthe electricity. Thefees aretaxable to the

extentthe saleof theelectricityis taxable.

144 Electronic payment processing See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 200008616R(1) Data processing services- It specifically includes word


145 Elevator inspections See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 9711963L 4. Inspection is anon-taxable service. 9206H1181B01 The repair and restoration of non-residential

realtyisa taxableservice.

146 Elevator repairs See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 9206H1181B01 The repair and restoration of non-residential realty is a

taxableservice.




taxable)

146.1 E missions Credits See Explanation Service This was for Emissions credits at Waller Compressor Station. Don Dotson 3-

6-2013 (Nitrogen Oxide)

147 Employee reimbursables See Explanation Fee Other 8906L0980F01 Reimbursable expenses associated with the purchase of a taxable item orservice(i.e. debt collection, security, repair of personalor real property,

maintenanceof personalproperty, etc.)

8906L0980F01 2. On or after October 1, 1987, these expensesaretaxable onlyif theservicingprovided istaxable.

147.1 Engineering See Explanation Service Professional Services 22,135 Real Property Services 8803l0875D11 8803l0875D11A provider of taxable services may separately state labor

chargesfor electricalengineering, drafting, and architecturalservicesand

notcollectsales taxon thesecharges.

9508L1365B08 Aseparatelystated chargefor interior design

servicesisnot taxable.

148 Entering client's data See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 200008616R(1) Data processing services- It specifically includes word


148.1 Entertainment-Admissions Taxable Fee Amusement Services 21,410 Admissions and Entertainment 3.298. Amusement Services. 9510L1378F02 The fee by the Mariachis performers is not taxable to the



Rule3.298(a)(8) statesthat thecontract or agreementwhereby

therightis secured for aprovider to offer an amusement,

recreation or entertainmentasan amusementserviceisnot the

saleof an admission to an amusementservice and isnot subject

to salestax.

148.1 Entertainment-Amusement service Non-Taxable Fee Amusement Services 21,410 Admissions and Entertainment 3.298. Amusement Services. 9510L1378F02 The fee by the Mariachis performers is not taxable to the



Rule3.298(a)(8) statesthat thecontract or agreementwhereby

therightis secured for aprovider to offer an amusement,

recreation or entertainmentasan amusementserviceisnot the

saleof an admission to an amusementservice and isnot subject

to salestax.

149 Equipment rental/lease See Explanation Service Rental 21,280. Leases and Rentals 151.005 "Sale" or "purchase." 151.005 (2) the exchange, barter, lease, or rental of tangible personal

property;

149.1 Erosion Control See Explanation Service Landscaping 22,135 Real Property Services 3.356 Real property service. 9501L1363F08 Simply adding (dumping, spreading, packing, etc.) dirt

and/or rocksto theeroded areasin thecreekbank fallswithin thescope of

landscapingservices. Because thework isnot performed for aesthetic

purposes, addingthe dirtor rocksto the eroded areasis nottaxable

landscaping.

9501L1363F08 Yes, the installation of permanent erosion control

devicesqualifiesasimprovementsto realty. Installation of the

firstpermanenterosion controldeviceto anaturallyoccurring

waterwayisnew construction

150 Escalator inspections See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 9711963L 4. Inspection is anon-taxable service. 9206H1181B01 The repair and restoration of non-residential


151 Escalator repairs See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 9206H1181B01 The repair and restoration of non-residential realty is a

taxableservice.




taxable)151.1 Event Planner See Explanation Item Personal Services 22,080. Miscellaneous Services 200703903L 200703903L Venues hosting parties, conferences, or other events must pay

salestax to suppliersatthe timeof purchaseon thepurchaseof all

consumables,

151.2 Excavation-Digging Non-Taxable Service Landscaping 22,135 Real Property Services 3.356 Real property service. 9211T1205G08 Response: The charge to dig the hole is not taxable (Test

holesno repairs)



customerspremises.

152 Excitors See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


152.1 Eyeglasses See Explanation Item Safety Items 151.313 200004357L 151.313, provides a sales tax exemption for the following:

Correctivelensand necessary and related supplies, if dispensed or

prescribed byan ophthalmologistor optometrist.

152.2 Facility and Furniture Rental-Real Property Non-Taxable Service Rental 22,080 Miscellaneous Services 3.294 TAX POLICY NEWS Oct-11 When a contract for the lease or rental of

nontaxable realpropertyincludesthe leaseor rentalof furnitureor

equipment, no salestax isdue on theamountcharged to thetenant for the

leaseor rentalof the tangiblepersonal property, even if separatelystated.

9705476LRule 3.294 (k)(1) acontractfor thelease or rentalof

realpropertyincludesthe leaseor rental

of tangiblepersonalproperty(such as furniture) aspartof the

agreement, no

salestax isdue on theamountcharged thetenant for thelease or

rentalof

thetangiblepersonalproperty.

153 Fax machines Taxable Item Personal Property 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." 151.410 A seller shall compute the sales tax imposed by Subchapter C of






154 Fax services Taxable Service Telecommunications 21,900. Telecommunications 3.344 sections (b)(4) and (c)(1) 8905L0932F05 Fax transmissions fall within the definition of

"telecommunicationsservice" When provided asa "stand-alone"

independentservice for afee, salestax applies.

155 Fed-Ex services See Explanation Service Transportation 22,440. Shipping, Delivery, Transportation, Insurance and Handling Charges 3.303 3.303(a) The sales tax applies to all transportation or delivery charges to a





taxableitembeingdelivered.156 Feedwater heaters See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


157 Feedwater system See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


158 Fees, Professional Non-Taxable Service Professional Services 22,120 Professional services 8711A0844A08 The services of a lawyer are not taxable services under

chapter 151 of theTax

Codeunlessthe comptroller determinesthatthe lawyer isnot providinglegal

servicesand isactingsolelyas adebt collector.

22,120 Professionalservices,such asthose rendered by

lawyers, doctors, and accountantsare notspecificallyincluded in

thelist of servicesthatare subjectto tax.RIA

159 Fencing See Explanation Service Repairs/New Construction 22,135 Real Property Services 3.291 Contractors 6405L0112E12 Under Ruling 9, the fence company is the consumer under

alump-sumcontract and mustpay thetax on thepurchase priceof hisraw

materials, componentetc.

9606L1425A03 Similarly, replacingan entire existingfence with

anew fenceis newconstruction. Asinglecharge to demolish

and removethe old fenceistaxableif 5% or moreof the charge

isattributed to thewaste removal. Thechargefor demolition is

nottaxableif thecharge for removalis separatelystated and

taxed. Makingrepairsor replacingonly aportion of an existing

fenceon nonresidentialpropertyis taxableon thetotalcharge

billed to theowner.

160 Finance charges See Explanation Fee Other 22,380. Finance and Interest Charges 151.007(c)(5) 8112L0378C10 Sec. 151.007(c)(5) provides that "sales price" or "receipts"

doesnot include, if separatelyidentified to thecustomer on theinvoice, etc.,

"finance, carryingand servicecharges, or interest fromcredit extended on

salesof taxableitems

161 Financial information service See Explanation Service Information Services 22,040 Information Services 3.342 Information Services 200005251L General database research is subject to sales tax as the




162 Financial reports See Explanation Service Information Services 22,040 Information Services 3.342 Information Services 200005251L General database research is subject to sales tax as the





7/18


163 Fire alarm monitoring Non-Taxable Service Security Services 22,145 Security Services 3.333 8711L0848A05 Monitoring charges of locations in Texas are taxable,

exceptfor firealarm systems. Firealarm systemsare notcovered bythe

..Actand, therefore, nottaxableunder Rule3.333,

3.333(k)(3) personswho installelectronicaccess control

devices..Although nottaxable asa securityservice, the

installation of such a devicein an existingnonresidentialreal

propertyimprovementmay betaxable asnonresidentialreal

propertyrepair, remodelingor restoration. See3.357

164 Fire equipment inspection See Explanation Service Testing 22,040 Information Services 3.342 Information Services 3.342(a)(5)(B) Any sale of information primarily derived from laboratory,




165 Fire equipment maintenance See Explanation Service Safety Items 22,135 Real Property Services 9206H1181B01 maintenance of realty is not a taxable service. 3.357.(3)

Maintenanceon realproperty- Allscheduled periodicwork

9206H1181B01 The repair and restoration of non-residential


166 Fire equipment repair Taxable Service Safety Items 22,135 Real Property Services 9206H1181B01 The repair and restoration of non-residential realty is a

taxableservice.

167 Fire equipment testing See Explanation Service Testing 22,040 Information Services 3.342 Information Services 3.342(a)(5)(B) Any sale of information primarily derived from laboratory,




168 Fish for stocking ponds Non-Taxable Item Food 21,430 Agriculture, Aquaculture, Floriculture, Horticulture, and Nurseries 151.1551(c) 200109477L Fish that are ordinarily considered food for human

consumption, purchased to stockapond are nottaxable.

8706L0811F04 wehave determined thatfishingguideservices

arenot subjectto thesales tax. Also, fishingexcursion boat

servicesare nottaxable.

168.1 Fishing guides Non-Taxable Item Personal Services 21,410. Admissions and Entertainment 8706L0811F04 8706L0811F04 ..fishing guide services are not subject to the sales tax.169 Flaring gas Non-Taxable Service Pipeline Services 22,135 Real Property Services Contract labor to burn off gas in a pipeline when work is performed on the

pipeline. 8811L0919F08 Becausepipelinesarenot buildings, your cleaning

of a pipelinesis nottaxable.

170 Floor cleaning Taxable Service Building Services 22,135. Real Property Services 151.0048 Real property service. 151.0048 (4) building or grounds cleaning, janitorial, or custodial services;

170.1 Food See Explanation Item Food 21,660 Food and Grocery Sales 3.293 Food; food products; meals; food service. 151.314 a) Food products for human consumption are exempted from the

taxesimposed bythischapter.

3.293(k) Acaterer isa seller of prepared food and beveragesand

mustcollectsales taxon all chargesbilled in connection with the

saleof taxablemeals.

171 Forecasting Non-Taxable Service Professional Services 22,120 Professional services 3.342 (a) (5) (B) 200211591L Rule 3.342(a)(5)(B) exempts the information you are

purchasing. The weather information isderived viadirect scientific

observation of physicalphenomena.

172 Formatting client's data See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 200008616R(1) Data processing services- It specifically includes word


173 Freight See Explanation Service Transportation 22,440. Shipping, Delivery, Transportation, Insurance and Handling Charges 3.303 3.303(a) The sales tax applies to all transportation or delivery charges to a





taxableitembeingdelivered.

174 Furniture-Modular Add parts repair Taxable Service Furniture 22,080 Miscellaneous Services 200005335L 200005335L Response: A charge to reconfigure, repair, or add new parts to

modular furnitureistaxable.

9604L1407C12 Response: A movingservice to movea

customer'smodular furnitureisnot taxableeven if you haveto

disassembleand reassemblethe modular furniturein order to

effectthe move. However, if you are selling, renting, repairing

or remodelingmodular furniture, thesechargesare taxableto

your customer.

174.1 Furniture-Modular Disassembly-Moving-ReassemNon-Taxable Service Furniture 22,080 Miscellaneous Services 151.0101& 200005335L 200005335L Response: Moving furniture from one location to another is

nota taxableservice. Thechargesfor disassemblyand reassemblyof the

furniturethatare necessaryto effectthe movingof thefurnitureare not

taxable.






your customer.

174.2 Furniture-Modular Electrical Taxable Service Furniture 22,080 Miscellaneous Services 200005335L 200005335L Response: A charge to reconfigure, repair, or add new parts to

modular furnitureistaxable. 200005335L






your customer.

174.3 Furniture and Facility Rental-Real Property Non-Taxable Service Furniture 22,080 Miscellaneous Services 3.294 TAX POLICY NEWS Oct-11 When a contract for the lease or rental of

nontaxable realpropertyincludesthe leaseor rentalof furnitureor

equipment, no salestax isdue on theamountcharged to thetenant for the

leaseor rentalof the tangiblepersonal property, even if separatelystated.

9705476LRule 3.294 (k)(1) acontractfor thelease or rentalof

realpropertyincludesthe leaseor rental

of tangiblepersonalproperty(such as furniture) aspartof the

agreement, no

salestax isdue on theamountcharged thetenant for thelease or

rentalof

thetangiblepersonalproperty.

175 Fuses See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


176 Fuse/switch replacement See Explanation Service Pole Services NA NA

177 Gas burning equipment See Explanation Item Manufacturing 21,190 O verview of t he Sales and Use Tax Applicability 151.005 "Sale" or " purchase." Sales of t angible personal property are generally presumed taxable, u nless


178 Gas dehydrator equipment See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


179 Gas flaring Non-Taxable Service Pipeline Services 22,135 Real Property Services Contract labor to burn off gas in a pipeline when work is performed on the

pipeline. 8811L0919F08 Becausepipelinesarenot buildings, your cleaning

of a pipelinesis nottaxable.

180 Gas scouting reports See Explanation Service Information Services 22,040 Information Services 3.342 Information Services 200005251L General database research is subject to sales tax as the




181 Gas sweetening equipment See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


182 Generators See Explanation Item Manufacturing 21,190 Overview of the Sales and Use Tax Applicability 151.005 "Sale" or "purchase." Sales of tangible personal property are generally presumed taxable, unless


183 Gift certificates See Explanation Item Other 3.301(d) regarding cash discounts 8101L0315C13 Tax is not due on the sale of the gift certificate

184 Glove inspections See Explanation Service Testing 22,040 Information Services 3.342 Information Services 3.342(a)(5)(B) Any sale of information primarily derived from laboratory,

medical, or exploratorytestingor experimentation or any similar method ofdirectscientificobservation of physicalphenomenaisnot subjectto tax.


184.1 Golf-Non-profit entry fees Non-Taxable Fee Amusement Services 21,410 Admissions and E ntertainment 3.298. A musement Services. 200001994Lexempts amusement services provided e xclusively by an

educational, religious, law enforcementassociation, or charita\ble

organization.

3.298 ('c')(1) thefee substantiallyexceedswhat would normally

bepaid for useof the facility, and aperson is payingto compete

in acontest and partof thefee offsetsthe costof conductingthe

contest, and for prizes

185 Gravel See Explanation Service Landscaping 22,135 Real Property Services 3.356 Real property service. 8806L0884E01 sales tax is no longer due on the purchase price of

unprocessed sand , dirt, gravel or other similar materials.

9501L1363F08 adding( dumping, spreading, packing, etc.) dirt

and/or rocksto theerroded area...not.. for aesthetic..nottaxable

186 Guard dog service Taxable Service Security Services 22,145 Security Services 151.0101(a)(14 151.0101 (a) "Taxable services" means:(14) security services 3.333 (i) Excepted persons (3)persons who have full-time

employmentas peaceofficers , and who receivecompensation

for privateemploymenton an individualor an independent

contractor basisaspatrolmen, guards, or watchmen

187 Guards See Explanation Service Security Services 22,145 Security Services 151.0101(a)(14 151.0101 (a) "Taxable services" means:(14) security services 3.333 (i) Excepted persons (3)persons who have full-time

employmentas peaceofficers , and who receivecompensation

for privateemploymenton an individualor an independent

contractor basisaspatrolmen, guards, or watchmen

188 Guy wire replacement See Explanation Service Pole Services NA NA

189 H-pole structure replacement See Explanation Service Pole Services NA NA

190 Hacker prevention services See Explanation Service Data Processing 21,540 Computer Hardware, Software and Services- 3.330(a)(1) 200008616R(1) Data processing services- It specifically includes word

copy of tax by item

Documents