Texas The Texas State Sales Tax is 6 1/4%. Other local sales taxes can be imposed up to a maximum of 8 1/4% in cumulative total sales taxes. Total max is determined by the location of the well site.
Some services and supplies obtained for new well drilling are sales tax exempt. See the Texas Administrative Code link for a listing of sales tax exempt services.
The Texas Comptroller of Public Accounts Audit Procedures for Oil and Gas Well Servicing is also very helpful in determining sales tax exempt services. Be sure to note in Chapter 4 of the Audit Procedures the services performed on real property that are tax exempt such as reclamation services and removal of waste materials from the site.
The Texas Oil Well Servicing Tax of 2.42% applies to some sales tax exempt services.