Heavy Highway Contractor

  • 1.  Texas Sales Tax -Unprocessed/processed materials (quarry/pit)

    Posted 10-20-2022 14:40
    Does anyone have a guide or general rules for Texas sales tax on unprocessed/processed materials for a pit/quarry?  It's for a new subsidiary company.  I have a cheat sheet of Texas sales tax for new construction/repair remodel for T& M and Lump jobs that breaks down sales tax on AP vendors material, consumables equipment & labor and what is billable to the customer.   I'm willing to trade.  :)


    Thanks
    Sue

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    Sulema Jimenez
    Controller
    JE Construction Services, LLC
    Corpus Christi TX
    (361) 289-2901
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  • 2.  RE: Texas Sales Tax -Unprocessed/processed materials (quarry/pit)

    Posted 03-08-2023 08:05

    As a trucking company that buys a lot of aggregates most seem to follow the following rule: if you have to crush, screen, and/or wash the material you are selling, you should tax it.  Just digging it out of the ground and loading it onto trucks?  No tax.

    To be clear I haven't backed this up with any research in the Texas Administrative Code.



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    Eric Dance CPA
    CFO
    AggMaps/Alliance Trucking LP
    Arlington TX
    (972) 445-1772
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  • 3.  RE: Texas Sales Tax -Unprocessed/processed materials (quarry/pit)

    Posted 03-08-2023 09:25

    Thank you...I did find the following article in the Texas Comptroller of Public Accounts STAR system.  It was hard to find.  They don't make it easy.

    https://star.comptroller.texas.gov/view/201901047L



    ------------------------------
    Sulema Jimenez
    Controller
    JE Construction Services, LLC
    Corpus Christi TX
    (361) 289-2901
    ------------------------------



  • 4.  RE: Texas Sales Tax -Unprocessed/processed materials (quarry/pit)

    Posted 03-08-2023 10:57

    That's a great find.  Consider me surprised.  No tax on screened materials because the act of screening isn't changing the size of the (sand) grains.  Cool!



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    Eric Dance CPA
    CFO
    AggMaps/Alliance Trucking LP
    Arlington TX
    (972) 445-1772
    ------------------------------