Which surveying services are taxable and which are exempt under Texas sales tax?
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This page answers the general question as of 1992. Ezel answers yours, under current Texas tax law, with citations.
Subject
Surveying Service — Taxable/Nontaxable Partial List
Plain-English summary
A surveying company asked the Texas Comptroller to go through a list of the specific services it performs and say which ones are taxable and which are not. The Comptroller responded item by item, and the underlying rule that ties it all together is simple: surveying that establishes or fixes a property's legal boundary is taxable; surveying that just locates things within a boundary that is already known is not.
Applying that line:
- Nontaxable: control staking (setting horizontal/vertical control with no boundary work), topographic surveys (mapping elevation and physical features of a property), and most construction staking (storm/sanitary, water, paving, clearing and grubbing, utility staking) — because these locate structures or features within an existing boundary rather than determining the boundary itself.
- Taxable: lot staking done for conveyance of title, "as built" verification for county approval, boundary surveys, and platting (preparing subdivision drawings for recording) — because each of these involves determining or documenting a boundary.
- Mixed engagements: if a single charge covers both a taxable and a nontaxable survey, the whole charge is taxable. The surveyor can avoid that by billing the taxable and nontaxable work as separate line items and collecting tax only on the taxable portion.
- Printing and delivery charges: these simply follow the taxability of the survey they relate to. Printing or delivery charges for a taxable survey are taxable (though the surveyor can give its printer a resale certificate instead of paying tax on the printing itself); charges for a nontaxable survey are not taxable to the customer, but the surveyor must pay tax to the printer on that printing.
- Engineering services: the letter notes it's unclear exactly what "engineering services" the taxpayer meant, but says engineering services are generally not taxable, and the surveyor must pay tax when it buys taxable items used to perform them.
What this means for you
Surveying firms
Break out your invoices by service type. If a job includes both boundary-determination work (taxable) and pure location/topographic work (nontaxable), bill them as separate line items — otherwise the whole invoice becomes taxable. Track which surveys are "boundary" surveys (lot staking for conveyance, boundary surveys, platting, as-builts for county approval) since those are the taxable category, versus location-only work like control staking, topographic surveys, and most construction staking.
Accountants and tax professionals
This ruling is a useful item-by-item reference for classifying common civil-engineering and land-development survey tasks, but it is a fact-specific 1992 letter ruling — it can only be relied on by the taxpayer it was issued to, and Comptroller policy may have since changed. Confirm current treatment before applying it to a client's facts.
Printers and subcontractors working with surveyors
If you print or deliver survey documents for a surveying firm, ask whether the underlying survey is taxable or nontaxable — that determines whether you should collect tax from the surveyor, accept a resale certificate, or the surveyor owes use tax on printing directly.
Common questions
Q: Is a boundary survey taxable in Texas?
A: Yes. The ruling states that determining a property's boundary is taxable, as are lot staking for conveyance of title and platting for recording — all of which involve fixing or documenting a boundary.
Q: Is a topographic survey taxable?
A: No. A topographic survey — mapping the horizontal and vertical features of a property without determining its boundary — is nontaxable under this ruling.
Q: What if one invoice covers both taxable and nontaxable survey work?
A: A single, undifferentiated charge covering both taxable and nontaxable work is taxed in full. To tax only the taxable portion, the surveyor must bill the two types of work as separate, itemized charges.
Q: Are printing and delivery charges for survey documents taxable?
A: They follow the taxability of the survey. Printing or delivery charges tied to a taxable survey are taxable (a resale certificate can be given to the printer instead of paying tax on the printing). Charges tied to a nontaxable survey are not taxable to the customer, but the surveyor must pay tax to the printer.
Q: Can I rely on this 1992 letter for my own surveying business?
A: Not directly. Under the STAR system's rules, a letter ruling can be the basis of a detrimental-reliance claim only for the taxpayer it was issued to, and Comptroller policy from 1992 may no longer reflect current guidance. Use it as an illustration of how the boundary-vs-location distinction has been applied, and confirm current treatment for your specific services.
Citations and references
- 34 Tex. Admin. Code § 3.303 (referenced in the ruling as "Rule 3.303," regarding delivery charges)
Source
- STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
- Opinion: https://star.comptroller.texas.gov/view/9207L1186C04
Original ruling text
July 31, 1992
Dear **:
Thank you for your letter of June 29, 1992, concerning the taxability of
surveying services provided by a client. The list of services and their
taxability follow.
(1) Construction Staking
(A) Control Staking - Establish control for all phases of construction.
Response: Running primary and secondary or horizontal and vertical control
where no boundary is involved is not taxable.
(Note: One response to the services described in paragraphs B through G follows
the descriptions.)
(B) Storm and Sanitary - The staking of manholes and inlets with double offset
- 15' and 30' plus intermediate 100' station with single offset.
(C) Water - Stake tees, water valves, fire hydrants with 10' offset. Stake
centerline of water 100' intervals, if needed.
(D) Paving - Stake one side of paving only on minor streets at 100' intervals
with 10' offset, typically. Stake both sides of paving on major thoroughfares
with medians.
(E) Clearing & Grubbing Staking - Stake right of way and utility easement for
clearing the property.
(F) Stake lots for construction of paving, storm and sanitary, water and dry
utilities.
(G) Construction staking for dry utilities.
Response: Determining the placement or location of structures within an
existing boundary is not taxable. Determining the boundary is taxable. A single
charge for both a taxable and nontaxable survey is taxed in whole. You may make
separate charges for each and collect tax on only the taxable portion.
(2) Lot Staking - Stake lots for conveyance of title.
Response: Taxable.
(3) As Builts - Verify the location and elevation of storm sewer manholes and
inlets and paving construction for county approval.
Response: Taxable.
(4) Topographic Survey - Horizontal and vertical topographic features of a
property.
Response: Nontaxable.
(5) Boundary Survey - Establish boundary of property.
Response: Taxable.
(6) Platting - Prepare drawing of sub-division of land for recording.
Response: Taxable.
(7a) Printing charges pertaining to survey work.
Response: Printing charges are taxable when printing taxable surveys. A resale
certificate may be issued to the printer in lieu of tax. Printing charges are
nontaxable when printing nontaxable surveys. However, tax must be paid to the
printer for printing nontaxable surveys.
(7b) Printing charges pertaining to engineering services.
Response: It is unclear what the engineering services involve. Generally
speaking, engineering services are not taxable. Tax must be paid at the time of
purchase on taxable items used to perform these services.
(8a) Delivery charges pertaining to survey work.
Response: Delivery charges are taxable when delivering taxable surveys.
Delivery charges are nontaxable when delivering nontaxable surveys.
(8b) Delivery charges pertaining to engineering services.
Response: Again, it is unclear what the engineering services involve. Delivery
charges are taxable when made in connection with a taxable service. Delivery
charges are nontaxable when made in connection with nontaxable services. Please
refer to Rule 3.303.
This opinion is based on the facts presented. If there are any additional or
different facts, the opinion may change.
If you have any questions or need additional information, you may call toll
free 1-800-252-5555, ext. 50037 or the regular Austin number is 512-475-0037.
You also may write to Tax Administration Division.
Sincerely,
Lindey Osborne
Tax Administration Division
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