Is glauconite (a naturally occurring mineral) exempt from Texas sales tax like other unprocessed natural materials such as sand, dirt, and gravel?

Plain-English summary

A taxpayer asked the Comptroller about the sales tax treatment of glauconite, a naturally occurring mineral material. The Comptroller confirmed that sales tax is not due on unprocessed glauconite — it's treated the same way as other unprocessed natural materials like sand, dirt, and gravel.

The key distinction is the level of processing: materials are considered "unprocessed" (and therefore exempt) if they've been merely sorted, sized, screened, washed, and/or dried. Once the same material is sold in a processed state — the letter gives crushing or mixing with other materials as examples — both the material itself and the related transportation charge become taxable.

What this means for you

Sellers of natural minerals, aggregate, and similar bulk materials

Whether your material qualifies for the unprocessed-materials exemption turns on what you've actually done to it, not what it's called. Sorting, sizing, screening, washing, and drying keep a natural material like glauconite (or sand, dirt, gravel) in the exempt "unprocessed" category — but crushing it or blending it with other materials pushes it into taxable "processed" territory, along with the transportation charge for delivering it.

Buyers of bulk natural materials

If you're buying material marketed as "unprocessed" to claim an exemption, confirm what was actually done to it — mere sorting/sizing/screening/washing/drying keeps the exemption, but crushing or mixing does not.

Accountants and tax professionals

This letter is a useful companion to the corpus's cut-limestone ruling (9804290L): both apply the same sorted/sized/screened/washed/dried unprocessed-materials test, with limestone falling on the taxable "processed" side (because it was cut) and glauconite explicitly confirmed exempt when it stays within the narrower unprocessed operations.

Common questions

Q: Is glauconite exempt from Texas sales tax?
A: Yes, when sold unprocessed — meaning merely sorted, sized, screened, washed, and/or dried, just like sand, dirt, and gravel.

Q: What operations keep a material like glauconite in the "unprocessed" category?
A: Sorting, sizing, screening, washing, and/or drying.

Q: What happens if the material is crushed or mixed with other materials?
A: It becomes taxable in that processed state, and the related transportation charge is taxable too.

Q: Can I rely on this letter for a different natural material?
A: No. It's based on the facts submitted and current law, and the letter notes other facts, though similar, may result in different answers.

Citations and references

No specific Tax Code section or rule number was cited in this letter; it applies the Comptroller's general unprocessed-materials framework (sorted/sized/screened/washed/dried) to glauconite specifically.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9803202L

Original ruling text

March 23, 1998

Dear **:

Thank you for your letter dated March 19, 1998, concerning the taxability of
glauconite.

Sales tax is not due on unprocessed glauconite. This is a naturally occurring
material and it is treated like sand, dirt, and gravel.

The materials are considered unprocessed if they have been merely sorted,
sized, screened, washed, and/or dried. The sale of the same materials in a
processed state (i.e., crushed or mixed with other materials) and the related
transportation is taxable.

Rules and other tax information are on the Comptroller's website,
.

This opinion is based on the facts you submitted and current law. Other facts
though similar, may result in different answers.

If you have any questions or need more information, I'll be glad to help you.
Please call me toll free at 1-800-531-5441, extension 5-0330. The direct line
is 512/475-0330. You may also write to Tax Policy Division, Comptroller of
Public Accounts.

Sincerely,

Bettie Peterson
Tax Policy Division