Is a charge for security services provided by an off-duty peace officer subject to Texas sales tax?

Plain-English summary

Someone's inquiry about Texas sales tax was forwarded to a Comptroller staff member, who confirmed a short, specific point: a charge by an off-duty peace officer for providing security services is not subject to Texas sales tax. While security services are generally a taxable category, Rule 3.333 ("Security Services") carves out this specific exception in section (i)(3), which exempts charges for security services performed by off-duty peace officers.

What this means for you

Businesses hiring off-duty police officers for security

You don't need to charge or pay sales tax on a fee paid directly to an off-duty peace officer for providing security services — this narrow exemption under Rule 3.333(i)(3) applies specifically to that arrangement.

Security services companies

If your business employs or contracts with off-duty peace officers to provide the security work (as opposed to non-officer security personnel), confirm whether Rule 3.333(i)(3)'s exemption applies to your specific billing structure — the exemption is tied to the officer's off-duty peace-officer status, not to security services generally.

Accountants and tax professionals

This is a narrow, specific exemption worth knowing exists within the broader (generally taxable) security services category under Rule 3.333 — don't assume all security services are taxable without checking for this off-duty-officer carve-out.

Common questions

Q: Are security services generally taxable in Texas?
A: Yes, security services are a taxable category, but this specific exemption applies to off-duty peace officers.

Q: What rule creates this exemption?
A: 34 Tex. Admin. Code § 3.333(i)(3), part of the broader Security Services rule.

Q: Can other security businesses rely on this exact letter?
A: No. This is a Texas STAR letter ruling binding on the Comptroller only for the taxpayer it addresses (34 Tex. Admin. Code Rules 3.1, 3.10); confirm your own facts with a tax professional.

Citations and references

Rules:

• 34 Tex. Admin. Code § 3.333(i)(3) (Security Services; off-duty peace officer exemption)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200008620L

Original ruling text

August 23, 2000

From: Philip Knisely
To: "**"
Subject: tax ruling

Dear **:

Thank you for your recent inquiry regarding Texas sales tax. Your email was
forwarded to me for response.

A charge by an off duty peace officer providing security services is not
subject to Texas sales tax. I attached a copy of Rule 3.333 "Security
Services" for your review. Section (i)(3) exempts charges for security
services provided by off duty peace officers.

This opinion is based on the facts presented. Additional or different facts
may yield different results.

Please let me know if you have additional questions.

Sincerely,

Philip Knisely