Is 'moss rock' or rip-rap rock sold in its natural state for landscaping subject to Texas sales tax?

Subject

Moss Rock Or Rip — Rap Rock Used For Landscaping Purposes And Sold In Its Natural State — Considered Unprocessed Material

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9403L1293C11

Plain-English Summary

The Comptroller addressed whether "moss rock" — picked up in its natural state, not cut or blasted from the ground, not chipped or washed, and containing native dirt, earth, and grasses — is subject to Texas sales tax when sold by nurseries (sometimes one rock at a time, sold by the pound) for landscaping use. No effort is made to transplant plants or other organisms into the rock or promote their growth.

The Comptroller explained that since June 1988, its policy has been to exempt the sale of "unprocessed" sand, dirt, gravel, and rock, and that a hauler of these non-processed materials should not collect tax on transportation either. Because the moss rock described was picked up in its natural condition with only incidental breakage during shipment, it qualifies as unprocessed rock and is not taxable.

The letter extends the same logic to "rip-rap": it is not taxable if sold in the condition it is found in nature. However, the ruling draws a clear line — chipped rock, and rock that is cut or blasted from the ground, is taxable because it has been processed.

What This Means For You

If you sell moss rock, rip-rap, or similar landscaping rock in its natural, as-found condition: You generally do not need to collect Texas sales tax on those sales, and a hauler transporting the unprocessed material should not collect tax on the transportation charge either.

If your rock has been cut, blasted, chipped, or otherwise altered: That processing changes the tax treatment — cut or blasted rock is taxable, even if it looks similar to the unprocessed product.

If you're unsure how your product was obtained: The ruling turns entirely on the facts of how the material is gathered (picked up vs. cut/blasted) and whether it's altered beyond incidental breakage during shipment. Keep in mind this letter is based on the specific facts presented by this taxpayer — the Comptroller notes that different facts could change the outcome.

Q&A

Q: Is moss rock sold for landscaping subject to Texas sales tax?
A: No, as long as it is obtained by picking it up in its natural state — not cut or blasted from the ground, and not chipped, washed, or otherwise altered beyond incidental breakage during shipment. The Comptroller treats it as unprocessed rock, which has been exempt from sales tax since its policy took effect in June 1988.

Q: Is rip-rap taxable?
A: Not if it is sold in the condition it is found in nature. If it is chipped, cut, or blasted from the ground, it becomes taxable as processed material.

Q: Does the exemption cover the cost of hauling the rock?
A: Yes — per the ruling, a hauler of unprocessed sand, dirt, gravel, and rock should not collect tax on the transportation charge for those materials.

Original ruling text

March 18, 1994

Dear **:

Thank you for your letter of March 9, 1994, concerning the taxability of
"moss rock".

Your letter states that "moss rock" is obtained by picking it up, in its
natural state. The rock is not cut or blasted from the ground. The rock is not
chipped, washed, or altered in any manner other than incidental breakage
during shipment. The rock contains native dirt, earth, grasses, etc., and is
sold by the pound. No efforts are made to transplant plants or other organisms
into the rock or promote their growth. Nurseries may sell the rocks one at a
time. The rocks are normally used for landscaping.

The Comptroller's policy, since June of 1988, has been to exempt the sale of
"unprocessed" sand dirt, gravel, and rock. A hauler of these non processed
materials should not collect tax on transportation. The moss rock
discussed above will be considered unprocessed rock.

"Rip-rap" is not taxable if sold in the condition that it is found in nature.
Chipped rock and rock cut or blasted from the ground is taxable as it is
processed material.

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

You may call me toll free at 1-800-531-5441, ext. 5-0613. The direct line
is 512/475-0613. You may also write to Tax Administration Division,
Comptroller of Public Accounts.

Sincerely,

Kevin Koller
Tax Administration Division

NOTE: Previous Accession Number 9403187L