Is laser surveying used to determine blast burden on a rockface in a quarry or mine a taxable real property service in Texas?

Subject

Laser Surveying — To Determine Burden On The Rockface For Placing Explosive Blasts In Quarries/Mines

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9403L1293G01

Plain-English Summary

A consulting company asked the Comptroller whether its laser surveying services were subject to Texas sales tax. The company works in quarries and mines that use explosive blasting to extract rock and minerals. It uses laser surveying solely to determine the "burden" on the rockface — that is, the mass of rock in front of a planned blast — so it can recommend explosive types, drill locations, and other details in planning the blast. The company does not survey property boundaries or the locations of buildings, does not sell explosives, and does not perform the drilling itself; its role is limited to advance planning for the quarry, mine, or the companies that carry out the blasting and drilling.

The Comptroller ruled that this surveying is not taxable. Under 34 Tex. Admin. Code Rule 3.356(a)(9), taxable "surveying" is real property surveying performed to determine or confirm the boundaries of real property, or to determine or confirm the location of structures or other improvements in relation to those boundaries. Because the company's laser surveying is used only to measure rockface burden for blast planning — not to establish or confirm property boundaries or structure locations — it falls outside that taxable category.

What This Means For You

If you provide laser surveying or similar measurement services for quarries, mines, or blasting operations: Surveying that is limited to technical measurements for blast planning (such as determining burden on a rockface) is not automatically taxable as "surveying" under Rule 3.356(a)(9). The key distinction is whether the work determines or confirms real property boundaries or the location of structures relative to those boundaries — if it doesn't, it isn't the taxable kind of surveying.

If your work also touches boundary or structure-location surveying: This ruling does not exempt all surveying-adjacent services. If any part of your work does determine or confirm property boundaries or the location of structures relative to boundaries, that portion could still be taxable under Rule 3.356(a)(9).

Facts matter: The Comptroller expressly noted this opinion is based on the facts presented, and that different, even similar, facts could lead to a different answer. If your services include boundary work, additional surveying tasks, or other functions beyond blast-planning measurements, you should confirm your specific facts with the Comptroller.

Q&A

Q: Is laser surveying used to plan explosive blasts in a quarry or mine subject to Texas sales tax?
A: No, according to this ruling. The Comptroller found that surveying used only to determine burden on the rockface for blast planning is not taxable surveying under 34 Tex. Admin. Code Rule 3.356(a)(9).

Q: What makes surveying "taxable" under Rule 3.356(a)(9)?
A: Taxable surveying is surveying performed to determine or confirm the boundaries of real property, or to determine or confirm the location of structures or other improvements in relation to those boundaries. Surveying that doesn't do either of those things is not taxable under this rule.

Q: Does this ruling cover selling explosives or performing the drilling for the blast?
A: No. The company in this ruling stated it neither sells explosives nor performs the drilling — its work is limited to advance planning (including the laser surveying) for the quarry, mine, or the companies that handle those other tasks. The ruling only addresses the taxability of the surveying/consulting service itself.

Citations

• 34 Tex. Admin. Code Rule 3.356(a)(9) (defining taxable real property surveying as surveying to determine or confirm boundaries, or structure locations relative to boundaries)

Original ruling text

March 22, 1994

Dear *:

Thank you for your fax transmittal on March 21, 1994, regarding
sales tax as it applies to services provided by ****.

FACTS: **** is a consulting company
which utilizes laser surveying in its design consulting.
Work is done in quarries and mines which do explosive
blasting to extract rock and minerals. The company does not
survey boundaries or locations of buildings in our work. Our
sole reason for surveying is to determine burden on the
rockface for placing explosive blasts. We then recommend
explosives types, drill location, etc. in planning the
blast. We neither sell explosives nor do we do the drilling.
Our job is in the advance planning for the quarry, mine, or
the other companies which do these things.

QUESTION: Are the services described above and provided by
**** subject to sales tax?

RESPONSE: The surveying you describe is not surveying
performed to determine or confirm the boundaries of real
property, or to determine or confirm the location
of structures or other improvements in relation to the
boundaries of the property. Rule 3.356(a)(9). The surveying
performed by **** is not taxable surveying.

This opinion is based on the facts presented. Different
facts, though similar, might lead to different answers. If
you have any questions or need more information, please
write or call me toll free at 1-800-531-5441, extension
5-0330, or 512-475-0330.

Sincerely,

Bettie Peterson
Tax Administration Division

NOTE: Previous Accession Number 9403197L