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Ezel / Tax Rulings / TX
TX 9001L0972G13 Sales and/or Use Tax (State,Local,MTA) 1990-01-08

Could a caterer rent reusable tables, chairs, silverware, or china tax-free for resale to catering customers?

Short answer: No. The caterer's reusable-item rental was an expense of selling meals, not a re-rental to customers, even if separately stated. The caterer owed tax when renting those items.

Apply this to your situation

This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

A seller could not accept a caterer's resale certificate for reusable items such as tables, chairs, silverware, or china.

The caterer's use of those items was not treated as a re-rental to its customers, even when separately stated on the catering bill. Instead, the rental was an expense connected with selling meals or food products, so the caterer owed tax when it rented the property.

STAR's subject metadata also names other equipment, but the operative body specifically decides only the reusable examples listed above.

Common questions

Could the caterer issue a resale certificate? No, for the reusable items described.

Did separately charging the customer make it a re-rental? No.

Who paid tax on the equipment rental? The caterer.

Citations and references

  • 34 Tex. Admin. Code Rule 3.293(f)(3) and (5)

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TX 78774

January 8, 1990

Dear ****:

Thank you for your recent letter regarding resale certificates
issued to you by a caterer.

A seller may not accept a resale certificate from a caterer in
lieu of tax on such items as tables, chairs, silverware, or china.
The caterer's rental of reusable items is not a re-rental to their
customers, even if separately stated. The caterer's rental of
reusable items is considered an expense connected with the sale of
the meals or food products; therefore, the caterer owes tax at the
time of rental. Please see Rule 3.293(f)(3) and (5).

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

If you have any questions or need additional information, you may
call me toll-free at 1-800-252-5555, extension 5-0330, or write to
me at Tax Correspondence, Comptroller of Public Accounts.

Sincerely,
Bettie U. Peterson
Tax Correspondence Division

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