Which oil-well, right-of-way, pipeline, and boundary surveys did Texas treat as taxable in 1988?

Plain-English summary

The Comptroller divided the surveying work by purpose:

• Oil-well placement surveying was not taxable if separately stated from boundary surveying.
• Surveying the boundaries of a right of way was taxable.
• Determining the actual location of a pipeline to be built within a right of way was not taxable.
• Surveying boundaries around an oil or gas well unit was taxable.

The letter also gave historical local-tax sourcing instructions. A business in Livingston appeared to owe state tax plus a printed 1.5% city tax and 0.5% Polk County tax. If the office was in an area with no local tax, the letter said to collect based on the customer's location. Those rates and rules require current verification.

What this means for you

Separately stating oil-well placement work mattered. Boundary determination was historically taxable even when related location work was not.

Common questions

Was oil-well placement surveying taxable? Not when separately stated from boundary surveying.

Was a right-of-way boundary survey taxable? Yes.

Was locating a proposed pipeline within the right of way taxable? No.

Are the printed local rates current? This page makes no such claim; they are 1988 figures.

Citations and references

The letter cites no numbered statute or rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8802L0863B11

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.

Oil well placement surveying is not taxable if separately stated from
the charge for boundary surveying.

The surveying of boundaries of a right of way is taxable. A survey which
determines the actual location of a pipeline to be built within a right
of
way is not taxable.

If you are surveying boundaries around an oil or gas well unit, the
surveying is taxable.

You pay taxes based on the location of your business. If you are located
within the city limits of Livingston, Texas it would appear that you
should collect state sales tax plus 1 1/2% city sales tax plus 1/2%
county
sales tax for Polk County. If your office should be located in an area
which has no local tax, you should collect taxes based on the location of
your customer or client.

We can appreciate the question you asked in the last paragraph of your
letter. However, we are required to collect tax based on the way the
Legislature writes the taxing statute. It would certainly be easier on
us
and on you to tax all or none of your services.

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
512/463-4600.

Sincerely,
Jo Ann Dieck
Tax Policy Division