Texas Comptroller Issues Private Letter Ruling on Sales, Use Tax for Modular Frac-Sand Handling, Storage System

The Texas Comptroller of Public Accounts issued a private letter ruling regarding the sales and use tax for a modular frac-sand handling and storage system. In response to the taxpayer’s request on whether the charges for the system are taxable, the Comptroller ruled that charges for a modular frac-sand handling and storage system with operators are not subject to Texas sales tax but are subject to the oil well servicing tax when provided as part of a fracking service. [Tex. Comptroller of Pub. Accts., Letter No. 202501013L, 01/17/25]

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