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Ezel / Tax Rulings / TX
TX 8511L0679B14 Sales and/or Use Tax (State,Local,MTA) 1985-11-13

Was labor to repair aluminum dump trailers subject to Texas sales tax?

Short answer: No. The letter treated the dump trailers as motor vehicles and said repair labor was exempt; Rule 3.292(b) applied sales tax to materials only.

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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 1985 Texas Comptroller taxpayer-response letter addressing labor to repair aluminum dump trailers. The reproduced body classifies them as motor vehicles and says the sales-tax repair-labor exemption had applied since October 2, 1984; it does not decide the transportation-charge issue named in STAR's caption. It expressly says different facts could change the opinion. Current vehicle classification, repair, materials, insurance, and sales-and-use-tax rules may differ, and STAR documents may no longer represent current policy even when not marked superseded. Letters on STAR can support detrimental reliance only for the taxpayer to whom the letter was directly issued under 34 Tex. Admin. Code Rules 3.1 and 3.10. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice.
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 business had been collecting tax on labor to repair aluminum dump trailers, but the Comptroller said those trailers were motor vehicles. Under Tax Code § 151.0101, labor to repair, maintain, or restore motor vehicles was exempt effective October 2, 1984.

Rule 3.292(b) therefore referred to sales tax on repair materials, not the repair labor.

Common questions

Was the dump-trailer repair labor taxable? No.

Why? The letter classified the trailers as motor vehicles and applied the motor-vehicle repair-labor exemption.

Did Rule 3.292(b) tax the labor? No. The letter said it concerned materials only.

Did the reproduced body decide transportation charges? No.

Citations and references

  • Tex. Tax Code § 151.0101 — motor-vehicle repair-labor exemption identified in the letter.
  • Texas Comptroller Rule 3.292(b) — repair materials, as characterized by the letter.

Source

Original ruling text

November 13, 1985

Dear ***:

Thank you for your letter of October 29, 1985 concerning the following:

Situation:
Several months ago, we found out from your office that we should
be charging tax on labor for our repairs of aluminum dump trailers
in accordance to Rule 3.292, effective date 3-13-85. We have since
been charging tax on labor. We now have an insurance adjuster
who refuses to pay for the tax on the labor. We have shown him
Rule 3.292, and he still refuses to pay the tax. He is willing to
pay the tax if you will send us a written ruling stating that he
owes the tax. We would appreciate your help in this matter.

Response:
Mate aluminum dump trailers are motor vehicles and are taxes
under the motor vehicle statute. Sec. 151.0101 of the sales tax
statute exempts the labor to repair, maintain and restore motor
vehicles effective October 2, 1984. Sales tax Rule 3.292 (b) is
referring to sales tax on materials only since labor is specifically
exempt.

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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