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Ezel / Tax Rulings / TX
TX 8711L0844F11 Sales and/or Use Tax (State,Local,MTA) 1987-11-19

Which Texas surveying services were taxable, which were not, and how did the Comptroller treat a well-location job containing both kinds of work?

Short answer: Boundary- and property-location work was taxable, while listed control, topographic, tree, pipeline-centerline, and lot-staking work was not. For well jobs, lease-boundary work was taxable but locating the well was not, so charges had to be separated.

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 November 1987 Texas Comptroller letter classifying a submitted list of surveying services under Rule 3.356. It says the opinion may change if the facts differ. The classifications, mixed-service billing rule, and real-property-service definition are historical and may have changed substantially; verify current law and the precise scope of each field and office task. STAR documents may no longer represent current policy even when not marked superseded.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

Taxable services included title and land surveys; boundary staking and referencing; as-built, lot, and updated lot surveys; right-of-way and clearing-limit work for utilities; lot-line control for dry utilities; and the lease-boundary portion of a well-location job. The listed title and land survey office work, including computations, plats, field-note descriptions, and in some cases a courthouse title search, was included in the taxable classification.

Nontaxable services included primary, secondary, horizontal, and vertical control without boundary work; centerline control staking for utility layouts; topographic maps; tree surveys; pipeline centerline or route surveys; and preliminary and final lot staking.

For well-location work, determining lease boundaries was taxable but locating the well was not. The provider had to separate the charges or the whole charge would be treated as taxable.

What this means for you

The historical rule focused on whether the survey determined or confirmed real-property boundaries or located structures or improvements in relation to those boundaries. The name of the project alone was not enough; a single job could contain both taxable and nontaxable components.

Common questions

Were boundary and title surveys taxable? Yes.

Were topographic maps and tree surveys taxable? No, under the submitted list.

How was a well-location project treated? Lease-boundary work was taxable, while determining the well location was not.

What happened if mixed charges were not separated? The total charge was considered taxable.

Citations and references

  • 34 Tex. Admin. Code Rule 3.356 (real property services)

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TX 78774

November 19, 1987

Dear *:

Thank you for your letter concerning the taxability of various surveying
services.

I have divided the list of services you submitted into taxable/nontaxable
sections.

TAXABLE

1) Title Survey-
a) Field work-includes locating corners and boundary of lot with
location of house.
b) Office work-includes computation, drafting of plats and field note
description.

2) Land Survey-
a) Field work-includes locating property lines corners.
b) Office work-includes computation, drafting and field note
description. In some cases, title search at courthouse.

3) Boundary staking and referencing.
4) As built surveys
5) Lot surveys.
6) Lot resurvey or update.
7) Establish right-of-way and flag clearing limits for utilities.
8) Establish lot line for control and clearing for dry utilities.
9) Well locations-includes boundary survey to determine acreage of unit.
Note: Determining the lease boundaries is taxable; determining the
location for the well is not. You should separate the taxable and
nontaxable charges or the total will be considered taxable.

NOT TAXABLE

1) Running primary and secondary control, (no boundary involved).
2) Running horizontal and vertical control, (no boundary involved).
3) Centerline control staking and reference for utility layout, profile
street.
4) Topographic maps.
5) Tree surveys.
6) Centerline staking for pipeline or route survey.
7) Preliminary lot staking for utilities.
8) Final lot staking.

I have enclosed a copy of Rule 3.356 Real Property Service. Taxable
surveying of real property includes activities performed to determine or
confirm the boundaries of real property, or to determine or confirm the
location of structures or other improvements in relation to the
boundaries of
property.

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,
Julie Pesl
Tax Policy Division

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