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Ezel / Tax Rulings / TX
TX 8410L0631E13 Sales and/or Use Tax (State,Local,MTA) 1984-10-23

When were Texas installation and repair labor for orthopedic or prescription therapeutic equipment exempt from tax?

Short answer: Separately stated installation labor was not taxable. Repair labor was exempt for orthopedic equipment or prescribed therapeutic equipment when tied to the prescription; repair of nonexempt equipment was taxable.

Apply this to your situation

This page answers the general question as of 1984. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1984
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Texas Comptroller said separately stated installation labor for the described handicap equipment was not taxable.

Repair labor was exempt when the equipment itself was exempt as orthopedic equipment or belonged to an individual who had purchased it as therapeutic equipment under a doctor's prescription. The repair had to be tied to the original prescription or another prescription obtained for that purpose.

Repair labor for nonexempt equipment was taxable.

What this means for you

Medical-equipment installers and repairers

Separately state installation labor and retain documentation connecting qualifying repair work to the equipment's orthopedic status or prescription.

Patients and equipment owners

The historical repair exemption depended on the equipment and, for therapeutic equipment, the prescription supporting its purchase and repair.

Accountants and tax professionals

The body does not discuss management fees despite the broad STAR metadata. Verify current medical-equipment and prescription rules.

Common questions

Q: Was separately stated installation labor taxable?
A: No.

Q: Was repair labor for exempt orthopedic equipment taxable?
A: No.

Q: What was required for prescribed therapeutic equipment?
A: The repair had to be tied to the original prescription or another obtained prescription.

Q: Was repair of nonexempt equipment taxable?
A: Yes.

Citations and references

  • The letter cites no statute or administrative rule.

Source

Original ruling text

October 23, 1984

Dear ***:

Thank you for your letter requesting clarification on repair and
installation labor on handicap equipment.

Installation labor, when separately stated, is not subject to tax. The
labor to repair equipment, which is exempt as orthopedic or belongs to an
individual who purchased it under a doctor's prescription as therapeutic, is
exempt from the tax. The labor to repair non-exempt equipment is subject to
tax. The repair must be tied to the original prescription or another obtained.

This opinion based upon the facts you presented. If there are additional
or different facts, this opinion may change.

Please feel free to contact us if you have additional questions. You may
write us, call toll free 1-800-252-5555 from anywhere in Texas.

Sincerely,

Tax Policy Section
Tax Administration Division

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