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Ezel / Tax Rulings / TX
TX 8710L0844C13 Sales and/or Use Tax (State,Local,MTA) 1987-10-29

Were off-duty security services performed by full-time peace officers taxable, and did the answer change when a security company employed them?

Short answer: Direct services by full-time peace officers were not taxable, but their time was taxable when included in a security company's charges.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
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 a taxpayer-specific October 1987 Texas Comptroller letter about off-duty security work by full-time peace officers. It says the opinion may change if the facts differ. Its employee-versus-direct-provider distinction under the cited law and Rule 3.333 is historical; verify current definitions and taxability. STAR documents may no longer represent current policy even when not marked superseded. Identities 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

Security services performed directly by people who had full-time employment as peace officers under Texas Code of Criminal Procedure article 2.12 were not taxable under the letter. The letter referred to Rule 3.333.

The answer changed when the peace officer was employed by a security service. In that arrangement, the officer's time was taxable when the security company included it in its charges.

What this means for you

The historical letter distinguished an officer's direct off-duty security work from services sold through a security company. The officer's full-time peace-officer status and employment arrangement both mattered.

Common questions

Was direct security work by a full-time peace officer taxable? No under the letter.

What defined the covered peace officers? The letter referenced Code of Criminal Procedure article 2.12.

What if a security company employed the officer? The officer's time was taxable when included in the company's charges.

Citations and references

  • Texas Code of Criminal Procedure article 2.12, definition of peace officer referenced by the letter
  • Texas Comptroller Rule 3.333, security-services treatment referenced by the letter

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

October 29, 1987

Dear ****:

Thank you for your recent letter concerning the taxability of certain
security guard services.

You asked whether or not municipal police officers who are working as
security guards for private companies during their off hours will be required
to obtain sales tax permits, charge and report tax for those services.

Answer: Security services provided by persons who have full time
employment as peace officers as defined by Code of Criminal Procedure, Article
2.12 are not taxable. Please refer to Rule 3.333.

However, if the peace officer is employed by a security service his time
is taxable when included in the charges by the security services.

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,
(Mrs.) Jo Ann Dieck
Tax Policy Division

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