Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter O - STATE AND LOCAL SALES AND USE TAXES › Section 3.292 - Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
				  The following words and terms, when used in this section, shall have the
				  following meanings, unless the context clearly indicates otherwise.
(1) Chapter 160 boat--A vessel not more than
				  115 feet in length, measured from the tip of the bow in a straight line to the
				  stern, that is not a canoe, kayak, rowboat, raft, punt, inflatable vessel, or
				  other watercraft designed to be propelled by paddle, oar, or pole, and that is
				  subject to tax under Tax Code, Chapter 160 (Taxes on Sales and Use of Boats and
				  Boat Motors).
(2) Commercial
				  vessel--A vessel that displaces eight or more tons of fresh water before being
				  loaded with fuel, supplies, or cargo, and that is:
(A) used exclusively and directly in a
				  commercial or business enterprise or activity, including, but not limited to,
				  commercial fishing; or
(B) used
				  commercially for pleasure fishing by individuals who are paying
				  passengers.
(3)
				  Consumable supplies--Tangible personal property that is used by a service
				  provider to repair, remodel, maintain, or restore tangible personal property
				  belonging to another; is not transferred into the care, custody, and control of
				  the purchaser of the service; and, having been used once for its intended
				  purpose, is completely used up or destroyed. Examples of consumable supplies
				  include, but are not limited to, canned air used to remove dust from equipment
				  and solvents used to clean equipment parts.
(4) Extended warranty or service policy--A
				  contract sold to the purchaser of tangible personal property for an amount in
				  addition to the charge for the tangible personal property, or sold to an owner
				  of tangible personal property, to extend the terms of the manufacturer's
				  written warranty or provide a warranty in addition to or in place of the
				  manufacturer's written warranty.
(5) Fabricate--To make, build, create,
				  produce, or assemble components of tangible personal property, or to make
				  tangible personal property work in a new or different manner.
(6) Maintain--To perform
				  maintenance.
(7) Maintenance--Work
				  performed on operational and functioning tangible personal property that is
				  necessary to sustain or support safe, efficient, continuous operation of the
				  tangible personal property, or is necessary to keep the tangible personal
				  property in good working order by preventing decline, failure, lapse, or
				  deterioration.
(8) Manufacturer's
				  written warranty--A manufacturer's guarantee made for no additional charge to
				  the purchaser of an item of tangible personal property that the item is
				  operable and will remain operable for a specified period of time.
(9) Processing--The physical application of
				  the materials and labor necessary to modify or to change the characteristics of
				  tangible personal property. The repair of tangible personal property, belonging
				  to another, by restoring it to its original condition is not considered
				  processing of the tangible personal property. The mere packing, unpacking, or
				  shelving of tangible personal property to be sold is not considered to be
				  processing of the tangible personal property. Processing does not include
				  remodeling.
(10) Remodel--To modify
				  or remake tangible personal property belonging to another in a similar but
				  different manner, or to change the style, shape, or form of tangible personal
				  property belonging to another, without causing a loss of its identity or
				  without causing it to operate in a new or different manner. Remodeling does not
				  include processing.
(11) Repair--To
				  mend or restore to working order or operating condition tangible personal
				  property that was broken, damaged, worn, defective, or
				  malfunctioning.
(12) Restore--To
				  return tangible personal property that is still operational and functional, but
				  that has faded, declined, or deteriorated, to its former or original
				  state.
(13) Service provider--A
				  person who repairs, remodels, maintains, or restores tangible personal property
				  belonging to another.
(14)
				  Vessel--A watercraft, other than a seaplane on water, used, or capable of being
				  used, for navigation and transportation of persons or property on water. The
				  term includes a ship, boat, watercraft designed to be propelled by paddle or
				  oar, barge, and floating dry-dock.
(15) Warrantor--A person who has a
				  contractual obligation for a specified period of time to repair, remodel,
				  maintain, or restore tangible personal property belonging to another.