9707572L
July 10, 1997
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Dear *************:
Thank you for your letter of June 25, 1997, concerning
the expiration of the scrap tire recycling program. Hayden asked
me to respond to your letter.
The association and its members are in the process
of forming policy and procedures that will keep the program alive
and ethical. You anticipate the generators will continue to collect
a fee to defray the cost of transportation to end users. You
need to have clarification on the taxability of this fee effective
January 1, 1998. You propose to continue the same amount of fee,
but use the terminology of "disposal fee." You want
to know whether the "disposal fee" will be taxable.
Response: The disposal fee will be taxable as part
of the sales price of the tire. Texas Tax Code, Section 151.007(a)(2)
defines the sales price of a taxable item as the total amount
a taxable item is sold for without a deduction for materials,
labor or service employed, or other expenses. The disposal fee
is an expense the seller incurs for disposing of used tires.
This opinion is based on the facts presented. If
there are additional or different facts, the opinion may change.
You may call me at 463-4683. You may also write
to Tax Policy Division, Comptroller of Public Accounts.
Sincerely,
Eddie C. Washington
Tax Policy Division
cc: Hayden Denham
ACCESSION NUMBER: 9707572L
SUPERSEDED: N
DOCUMENT TYPE: L
DATE: 07/10/97
TAX TYPE: SALES