Texas Comptroller Issues Private Letter Ruling on Taxability of Nitrogen Insertion Services

The Texas Comptroller of Public Accounts issued a private letter ruling on the taxability of nitrogen insertion services. In response to the taxpayer’s inquiry, the Comptroller stated that the taxpayer’s service of injecting nitrogen into a pipeline to create a safe environment for pipeline operations is not taxable. However, the taxpayer owes sales or use tax only on materials and equipment used to perform the non-taxable service. [Tex. Comptroller of Pub. Accts., Private Letter Ruling No. 202503014L, 03/07/25]

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