Which City of Waco landfill, roll-off-container, and disposal-coupon charges were taxable under Texas's 1987 garbage-service rules?

Plain-English summary

The Comptroller treated admission to Waco's city landfill as nontaxable in four situations: use by other cities, asbestos-hauling permits for commercial customers, private liquid-waste haulers, and private solid-waste businesses carrying residential or commercial waste.

By contrast, the city's roll-off-container service was taxable effective October 1, 1987. Customers loaded containers at homes or businesses, and city vehicles picked them up and hauled them to the landfill.

Coupons allowing residents to use city-owned disposal sites were also taxable because their primary charge covered hauling and disposing of the public's garbage from those sites to the landfill. A convenience store buying coupons for resale could give the city a resale certificate and then had to report tax on its retail coupon sales.

What this means for you

The historical letter distinguished access to the landfill from a collection or hauling service. It also treated a disposal coupon according to the hauling and disposal it purchased, not merely as a permit.

Common questions

Was admission to the city landfill taxable? No, for each of the four listed landfill-use situations.

Was the roll-off-container service taxable? Yes, effective October 1, 1987.

Were disposal-site coupons taxable? Yes.

Could a convenience store buy coupons for resale? Yes, with a properly executed resale certificate; the store then reported tax on the sale.

Citations and references

• No statute or rule number is cited in the ruling text.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8708L0829F09

Original ruling text

August 27, 1987

City of Waco
1000 Columbus
Waco, Texas 76702-2649

Dear ***:

Thank you for your recent letter regarding the collection of tax on
commercial and residential solid waste removal.

I have restated your questions with my response immediately following.

Situation (1): Other cities collect solid waste and pay for the use of
the
City of Waco's landfill.

Response: Admission to a city landfill will not be subject to sales tax.

Situation (2): Asbestos permits are sold to commercial customers for
hauling asbestos, in their vehicles, to the city's landfill.

Response: Admission to a city landfill is not subject to sales tax.

Situation (3): Private haulers of liquid waste are charged for use of the
city's landfill.

Response: Admission to a city landfill is not subject to sales tax.

Situation (4): Private solid waste disposal businesses hauling
residential
and commercial solid waste are charged for use of the city's landfill.

Response: Same as situation (3).

Situation (5): Roll-off containers are delivered to residences and places
of
business, loaded by these customers, and picked up by city vehicles for
delivery to the landfill.

Response: The charge for this garbage collection service is subject to
sales tax effective October 1, 1987.

Situation (6): There are several city-owned sites equipped with large
portable containers. Permits (coupons) can be purchased by citizens
either from the city of Waco or local convenience stores for the use of
these sites. The solid waste is then hauled from the city-owned sites
to the city's landfill.

Response: The charge for the coupon is primarily a charge for hauling
and disposing of the public's garbage from the public site to the land-
fill. The charge for the coupon is taxable.

When the city sells the coupon to the convenience store for resale to the
public, a properly executed resale certificate should be accepted from
the convenience store in lieu of tax. The convenience store would then
be responsible for reporting the tax on the sale.

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,

F. Wayne McDonald
Tax Policy Division