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Ezel / Tax Rulings / TX
TX 8802L0863A01 Sales and/or Use Tax (State,Local,MTA) 1988-02-04

Which topographical, pipeline, construction-location, well-placement, and well-plat surveying services were taxable in Texas?

Short answer: Topographical surveys and surveys locating a new residence or commercial structure within a lot were nontaxable. Locating an existing pipeline in an existing right-of-way and preparing plats showing well units or acreage were taxable.

Apply this to your situation

This page answers the general question as of 1988. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1988
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 February 1988 Texas Comptroller letter. It gives a partial list of survey classifications, says the opinion may change if the facts differ, and cites no statute or rule. Surveying and real-property-service rules may have changed; verify current law before applying these historical classifications. STAR documents may no longer represent current policy even when not marked superseded. 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 Comptroller classified several surveying services:

  • All topographical surveying was nontaxable.
  • Locating an existing pipeline within an existing right-of-way was taxable.
  • Surveying to locate a new residence or commercial structure within a lot or tract was nontaxable.
  • Placement surveying within a tract applied to gas and water wells as well as oil wells.
  • Surveying related to plats showing the units or acreage around wells was taxable.

What this means for you

This was expressly a partial, fact-specific classification list. The letter did not explain the governing legal test or cite a rule, so a survey outside the named categories cannot be classified from this document alone.

Common questions

Were topographical surveys taxable? No.

Was locating an existing pipeline in an existing right-of-way taxable? Yes.

Were surveys locating a new home or commercial structure taxable? No, when locating it within a lot or tract.

Were well-unit or acreage plats taxable? Yes.

Citations and references

The letter cites no numbered statute or rule.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

February 4, 1988

Dear *****:

On behalf of Mr. Bullock, I hope you'll accept my apology for the delay
in
answering your question involving changes in the sales tax law. This
isn't the way we normally do business.

Our people were, and still are, swamped by a deluge of inquiries as they
attempted to interpret provisions of the new law and draft rules which
would not adversely impact businesses. In many instances, an answer to a
question just wasn't available when the question arrived.

All topographical surveying is non-taxable. The location of an existing
pipeline within an existing right-of-way is taxable surveying. The
surveying pursuant to location of a new residence or commercial structure
within a lot or tract of land is not taxable. Placement surveying within
a tract would apply to gas and water as well as oil wells. Surveying
relating to the plats showing the units or acreage around the wells would
be taxable.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact me if you have additional questions. You may
write me, call toll-free 1-800-252-5555 from anywhere in Texas or phone
512/436-4600.

Sincerely,
Jo Ann Dieck
Tax Policy Division

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