Texas Comptroller Determines Oil Well Servicing Company’s Sales Tax Collection, Payment Liabilities

The Texas Comptroller of Public Accounts Feb. 10 determined in a private letter ruling the sales and use tax liabilities of Taxpayer, an oil well servicing company. Taxpayer provided various services at oil and gas well sites and at its own equipment yard. A request for clarification was submitted to the comptroller regarding local tax sourcing and the appropriate local tax rate to be collected and remitted on sales of taxable services and purchases by Taxpayer. The comptroller indicated that: 1) Taxpayer was required to collect and remit the tax at the location of the equipment yard for rentals from ...