An environmental consulting firm tests soil for farmers and oil companies. When the firm finds an underground storage tank has contaminated the soil, the firm removes and disposes of the tank. These tanks must be marked and destroyed in accordance with guidelines issued by the Texas Water Commission. Getting rid of the underground tank is a waste removal service, and most waste removal services are taxable. The used tanks may be somewhat dangerous, but they are not classified as either hazardous waste or any of the other exceptions.
Tax is due on charges for their disposal.
A corporation provides administrative and data processing services for itself and affiliated corporations and bills its affiliates based on the actual cost of providing the services. Expense allocations by a corporation among its affiliates are gross receipts unless an agency relationship exists. Because the services were provided by the corporation and not by a third-party supplier, the corporation must include in its gross receipts the amounts billed to its affiliates. A corporation had inter-company payables to a sister corporation. No interest was paid or charged, and no security was pledged.