Is white Portland or masonry cement exempt from Texas sales tax, or does its color affect the standard cement exemption?

Plain-English summary

A short, practical letter following up a phone conversation about a specific product variant: White Portland Cement. The question was whether cement being white (rather than the standard gray) changes its sales tax exemption status.

The answer is simple: no. Portland and masonry cement are made in a white form as well as the standard form, and both Portland and masonry cement, even in white form, are exempt from Texas sales tax. A seller of white cement is not required to collect sales tax on it -- color is not a relevant factor for this exemption.

What this means for you

Cement manufacturers and building material suppliers

Don't assume a specialty or cosmetic variant of an otherwise-exempt product (like white cement, sold for its aesthetic properties in certain masonry or decorative applications) loses its exemption just because it differs in appearance from the standard product -- the underlying product category (Portland/masonry cement) is what matters.

Accountants and tax professionals

A simple, useful precedent for the broader principle that a product's tax-exempt status typically travels with its fundamental chemical/product classification, not with cosmetic variations like color, unless a specific rule says otherwise.

Common questions

Q: Is white Portland or masonry cement treated differently from standard cement for sales tax purposes?
A: No, both are exempt regardless of color.

Q: Do I need to collect sales tax when selling white cement in Texas?
A: No.

Q: Can I rely on this letter for my own cement sales?
A: No. It is based on the specific facts presented and can only be relied on by the taxpayer to whom it was issued.

Citations and references

This letter applies general Comptroller policy on the cement exemption; it does not cite a specific numbered Tax Code section or rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9904317L

Original ruling text

April 13, 1999

Dear **:

Thank you for our recent phone conversation regarding the taxability of a White
Portland Cement product.

Portland and Masonry cement is also made in a white form. Portland and Masonry
cement, even in a white form, is exempt from sales tax. You are not required
to collect sales tax on white cement.

This opinion is based on the facts you submitted. Other facts, though similar,
may yield different results.

You may call me toll free at 1-800-531-5441, ext. 5-0030. The direct line is
512/475-0030. You may also write to Tax Policy, Comptroller of Public
Accounts.

Sincerely,

David Somerville
Tax Policy Division