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Ezel / Tax Rulings / TX
TX 8908L0947G13 Sales and/or Use Tax (State,Local,MTA) 1989-08-07

Were gangway rentals to foreign-flag and domestic vessels taxable in Texas?

Short answer: Yes. Gangways were tangible personal property, so their rental was taxable for both foreign and domestic vessels. A port authority's requirement to use a proper gangway did not create an exemption.

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This page answers the general question as of 1989. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1989
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 an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
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

Rentals of gangways to foreign-flag and domestic vessels were taxable because gangways were tangible personal property.

The port authority's requirement that vessels use a proper gangway did not exempt the rental.

Common questions

Were gangway rentals taxable? Yes.

Did foreign-flag vessel use change the result? No.

Did the port authority requirement create an exemption? No.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller August 7, 1989

Dear ***:

I just want to take a minute to respond to your fax transmission
of August 5th regarding rentals of gangways of foreign flag
vessels.

You are correct to charge sales tax on the rental of gangways to
both foreign and domestic vessels. The gangways are tangible
property and rentals of tangible property are subject to tax. The
fact that the Port Authority requires the use of a proper gangway
would not exempt the transaction.

Feel free to call or write me if you have questions. You can
reach me by calling toll free 800-531-5441 or FAX (512) 475-0900.

Sincerely,
Al Van Allen
Taxability Section
Legal Services Division

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