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Ezel / Tax Rulings / TX
TX 8506L0643E08 Sales and/or Use Tax (State,Local,MTA) 1985-06-05

Which pressure-equipment calibration and related charges were taxable?

Short answer: Customer-equipment calibration and calibration included with rented pressure equipment were taxable. Calibration of the supplier's equipment used by its own personnel was not. Equipment sales and travel tied to taxable calibration were taxable, but lost-or-damaged-equipment charges were not.

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This page answers the general question as of 1985. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1985
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Calibrating a customer's pressure equipment was taxable. When the supplier rented its own pressure equipment to major operators, calibration was taxable as part of that rental. Calibration of the supplier's own equipment used by its own personnel was not taxable.

The sale of equipment was taxable, while a charge for damaged or lost pressure equipment was not. Travel and living expenses connected with taxable calibration were also taxable.

Common questions

Was customer-equipment calibration taxable? Yes. What if the supplier's own personnel used the supplier's equipment? That calibration was not taxable. Were lost-equipment charges taxable? No. Were travel expenses taxable? Yes when associated with taxable calibration.

Citations and references

The reproduced letter cites no numbered statute or rule.

Source

Original ruling text

June 5, 1985

Dear ***:

Thank you for your letter of April 8, 1985, concerning the taxability
of the products and services you provide.

According to your letter, you supply equipment (gauges, computer,
printer, chart scanner and calibration cells) to customers. You also
provide personnel (to operate the equipment) upon request.

The calibration of a customer's pressure equipment which is being used
by major operators such as ***, *****, etc. (office service)
is taxable.

The calibration of your pressure equipment which is used by major
operators is taxable as part of the rental of the pressure equipment.

The calibration of your pressure equipment which is used by your personnel is
not taxable. The calibration is taxable as part of the rental of pressure equipment
to major operators.

A charge made for damaged or lost pressure equipment is not taxable. The sale of
equipment is taxable.

Charges for travel and living expenses associated with a taxable service (calibration)
are taxable.

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

If you have any questions or need more information, please call us at
1-800-252-5555 toll free from anywhere in Texas. You may write us at the
Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division

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