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Ezel / Tax Rulings / TX
TX 8908L0948F13 Sales and/or Use Tax (State,Local,MTA) 1989-08-09

Could disposable tray liners provided to food-service customers be bought tax-free for resale?

Short answer: Yes. Disposable, nonreusable tray liners provided to customers could be purchased with a resale certificate whether they were plain white paper or printed with advertisements.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Disposable tray liners provided to customers could be purchased tax-free with a resale certificate under Rule 3.293(f)(4).

The result was the same for plain white paper liners and liners printed with advertisements because both were nonreusable and supplied to customers.

Common questions

Were disposable tray liners eligible for resale treatment? Yes.

Did printed advertising change the result? No.

Did the body decide placemats, plates, cups, or toothpicks? No. Despite the broader STAR label, the operative text discussed tray liners only.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TX 78774

Dear ****:

Thank you for your letter concerning the taxability of disposable
tray liners provided to your customers.

The disposable tray liners provided to your customers may be pur-
chased tax free with a resale certificate. It doesn't matter that
some are white sheets of paper and some are printed advertisements
because these liners are of a non-reusable nature and are provided
to your customers. See the enclosed Rule 3.293(f)(4).

This opinion is based on the facts presented. If there are addition-
al or different facts, the opinion may change.

If you have any questions, please contact Tax Correspondence. You
may call toll free 1-800-252-5555, or our regular number is
512/463-4600. My extension is 3-4658.

Sincerely,
Sherry Buckley
Tax Correspondence

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