Which tools and supplies could a surveyor buy for resale, and which were taxable to the surveyor?

Plain-English summary

Surveying equipment and operating supplies such as transits, levels, stamp sets, and wasp spray were taxable to the surveyor. Items actually transferred to a customer as part of a taxable survey could be bought with a resale certificate.

The letter identified brass markers, iron bars, pipe, and disks as possible resale items. Wooden stakes, flagging, and spray paint qualified only when used instead of permanent markers for a taxable survey.

A provider of nontaxable surveys had to pay sales or use tax on every item used to perform the service.

Common questions

Could survey equipment be purchased for resale? No. The letter treated equipment and operating supplies as taxable to the surveyor.

Which items could qualify for resale treatment? Markers actually transferred to the customer in a taxable survey.

What about nontaxable surveys? The provider paid tax on all items used.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8901L0921E13

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller January 17, 1989

Dear *:

Thank you for your letter of January 13, 1989 concerning the
taxability of various items used by surveyors to perform surveying
services.

As I indicated in our telephone conversation today, equipment and
supply items, such as transits, levels, stamp sets, wasp spray,
etc., are taxable to the surveyor. Items which are actually
transferred to the surveyor's customer as a part of a taxable
service may be purchased tax free with a properly completed resale
certificate. This could include brass markers, iron bars, pipe,
and disks. Wooden stakes, flagging, and spray paint may qualify
for exemption only if used instead of permanent markers for a
taxable survey.

Providers of nontaxable surveys must pay sales or use tax on all
items used to provide the service. I have included a Texas Tax
Bulletin prepared for surveyors which lists examples of taxable
and nontaxable surveys. Please review the enclosed Rule 3.285
for additional information on resale certificates and sales for
resale.

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 any additional
questions. You may write me, call toll-free 1-800-531-5441 from
anywhere in the United States or phone 512/463-4685.

Sincerely,
Julie Pesl
Tax Correspondence