Texas Issues Guidance on Architectural Services and Design Plans

Friday, October 30th, 2015

 
 
Blueprints.
Share
Link
Texas
Construction

The Texas Comptroller of Public Accounts ("Comptroller") issued guidance on the taxability of sales of design plans by an architectural firm.

The firm sold design plans. The plans were stock plans and were available to all customers. The firm also updated the plans for code compliance and made site-specific changes.

The Comptroller determined that sales of stock plans were taxable sales of tangible personal property. Any services (e.g., file conversion, printing, shipping) provided along with the sales of the plans were included in the taxable sales price of the plans.

If the firm modified plans in a way that used engineering, architectural, or draftsman skills to develop something original, the modified plans were not taxable. In this scenario, the firm was selling nontaxable professional services, not just plans. However, if the firm made changes merely to fit the specifications of the purchaser, the sales of the plans were still taxable as sales of tangible personal property.

http://cpastar2.cpa.state.tx.us/highlight/index.html?url=http%3A//aixtcp.cpa.state.tx.us/opendocs/open32/201510538t.html&charset=iso-8859-1&la=en&fterm=201510538T&search=../query.html%3Fqt%3D201510538T


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Service Repairs to Petroleum Storage Tanks Exempt in...

Friday, January 18th, 2019 -Louisiana's Board of Tax Appeals recently ruled that repairs on petroleum storage tanks were not taxable. ...

Nevada Exempts Feminine Hygiene Products in 2019

Wednesday, January 16th, 2019 -Last year, Nevada voters approved via ballot measure changes to the Sales and Use Tax Act of 1955. Voters amen...

Cleaning of Beer-Tap Lines Not Taxable in Ohio

Monday, January 14th, 2019 -The Supreme Court of Ohio recently ruled that cleaning beer-tap lines is not taxable. The taxpayer was...

Louisiana Court of Appeals Finds Marketplace Facilitators...

Friday, January 11th, 2019 -The Louisiana Court of Appeals has recently addressed the sales tax liability of marketplace facilitators. A c...

Iowa Supreme Court Determines Taxable Carpentry Services...

Wednesday, January 9th, 2019 -The Iowa Supreme Court has recently addressed the taxability of various installation services. The taxpayer wa...

Tax Applies to Metallurgical Coke in Illinois

Monday, January 7th, 2019 -Illinois recently ruled that use tax was due on purchases of metallurgical coke. The taxpayer was a business t...