Which typing-service charges were taxable in Texas for a single personalized document, extra copies, and multiple original copies?

Plain-English summary

Typing one personalized letter or report, such as a term paper, was a nontaxable service. The provider paid tax when buying supplies used for that service.

Extra copies of the typed item supplied for an additional charge were taxable to the customer. Multiple printing was also taxable—for example, an order for 20 original copies of a personalized form letter.

A provider making taxable sales needed a sales-tax permit. The letter also warned that word-processing services would become taxable January 1, 1988.

What this means for you

The historical line separated one personalized work product from the sale of multiple copies. It also shows the treatment changing shortly afterward for word processing generally.

Common questions

Was one personalized typed letter taxable? No.

Who paid tax on supplies used for that service? The typing provider.

Were extra copies taxable? Yes, when provided for an additional charge.

Was an order for 20 original form letters taxable? Yes, as multiple printing.

Citations and references

• Rule 3.312 — cited for the typing and multiple-printing distinction.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8707L0827F09

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller July 27, 1987

Dear **:

Thank you for your recent letter requesting a taxability ruling on typed
letters.

The typing of a single personalized letter or report such as a term paper
is
a nontaxable service. Supplies used in providing this service are
taxable to
you at the time of purchase. However, additional copies of the typed
items
provided for an additional charge are taxable to your customer.

A charge for the multiple printing of an item is taxable. An example of
this
would be an order for 20 original copies of a personalized form letter.
I am
enclosing a copy of Rule 3.312 which explains this in more detail.

If you plan to provide any of the above taxable sales, you need to apply
for
a sales tax permit. I am enclosing an application packet for your use.

Also, I would like to point out that the recent sales tax law changes may
affect your business in the near future. Word processing services become
taxable effective January 1, 1988. Please contact us in October for more
detailed information.

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 me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Policy Division.

Sincerely,
Sandi Skaggs
Tax Policy Division