Are
process servers required to charge “sales tax” for the services they
provide? Questions of this type were asked of the
Texas Comptroller's office on different occasions by both process
servers and investigators who provide other types of legal support. Here are
two letters that answer the questions raised, one from December of 2003, and
the second from August, 1998:
LETTER ONE:
December 10, 2003
“Dear*******
Thank
you for your e-mail concerning the taxability of serving court process papers
and of locating addresses in order to serve such papers.
Serving
a summons or a notification of a proceeding, court process papers, is not a
taxable service.
Next,
you asked whether the service of locating (or) attaining (sic) a current
address, in the furtherance of serving court process papers was taxable.
If you make a separately stated charge for finding an address
associated with your serving court process papers, such a charge would not
be taxable. This is because
finding an address is an integral part of the nontaxable service.
This
opinion is based on the facts you submitted. Other facts, though similar, may
yield different results.
Should
you wish to read and review more information on this subject, you are invited
to use the Comptroller’s web site (and our) STAR system (…an acronym for
the State Tax Automated Research system, which provides viewing and
downloading of edited letter rulings, hearings, rules, AG
Opinions, etc, may be accessed on the Internet.
The
entire text of the Tax Code, a complete set of rules, and a wealth of other
information are available on the Window
on State Government web site. You
may find the sales tax rules or statutes by first clicking on "Sales
Tax" under the Quick Links and then by clicking on "Rules" or
"Statutes" at the top left of the web page.
Should
you choose to locate, read and review one of our publications the address is:
http://www.window.state.tx.us/taxinfo/taxpubs/taxpubs.html#sales.
You may scroll to the specific rule, statute or publication.
This
opinion is based on the facts presented. If there are additional or
different facts, the opinion may change. You
may call me toll free at 1-800-531-5441.
Sincerely,
Nolan
F. Ward
Tax
Policy Division
LETTER
TWO:
August 17, 1998
Dear Ms. *********:
Thank you for your
recent letter describing in detail the services your company
provides when providing litigation support for attorneys and
individuals or non-litigating companies.
You describe the
services your firm provides as follows:
1. Attorney calls
or faxes our office to have an individual served a subpoena.
Our firm obtains Subpoena from ************** County
Courthouse or issues deposition Subpoena and service of
process is made upon witness to appear in Court or at
deposition.
2. Attorney or law
firm calls and request our firm to obtain confidential or
legal records from a State Agency, (i.e.) Department of
Human Services, Child Protective Services. We prepare
Deposition on Written Questions and serve on Custodian of
Records for agency. Notary Public from our office travels to
records custodian after ten days and conducts deposition and
obtains records in admissible form, files copies with
District Court of County of jurisdiction.
3. Travel to
Courthouse and obtain certified Court copies of case file or
review facts of case for attorney and provide summary /
brief of litigation.
4. Travel to
Courthouse, file new case or motion for attorney and have
clerk of the Court issue Citation for service on defendant /
respondent. Serve process on defendant / respondent,
Temporary Restraining Order, Protective Order, Original
Petition, Amended Motion or Petition, etc.
5. Attorney calls
and request our firm contact a witness in a case, meet with
witness and take statement, transcribe and transfer to
admissible Affidavit form, file original with Court and send
copy to attorney.
6. Appear in Court
before Judge, on behalf of, and at direction of attorney on
uncontested docket matters, have orders signed or Motions
Granted, file with Clerk of Court and serve on opposing
Counsel and all parties of record.
7. Set and
"post" matters for hearing on the docket of the
Court with administrators office.
Answer: The
services described above are not taxable. Your company is
required to pay sales tax on all taxable items used in
providing these nontaxable services.
This opinion is
based on the facts presented. If there are additional or
different facts, the opinion may change.
You may call me
toll free 1-800-531-5441, extension 3-4683 if you have any
questions or need more information. The direct line is
512/463-4683. You may also write to Tax Policy Division,
Comptroller of Public Accounts.
Sincerely,
Eddie C. Washington
Tax
Policy Division
