Theft of Service: Texas Penal Code §31.04

The Texas Theft of Service law makes it a crime to avoid paying for services by securing them through deception or threats, diverting services you’re not entitled to, holding property past a written rental term without consent, or failing to pay after receiving proper written notice demanding payment.

In addition to “services” in the common sense, the law also covers holding property past the end of a written rental term—though some rent-to-own agreements are expressly excluded from that rule.

The Texas legislature codified this criminal offense in Texas Penal Code Section 31.04. The legislature amended this law in 2019 to add rental-property presumptions (among other changes), and in 2023 to allow notice to be sent to additional addresses. In 2025, the legislature created separate notice rules for liability under Subsection (a)(4) and permits notice by e-mail or text message (in lieu of certified or registered mail or carrier service) under (a)(4) offense prosecutions.

This law has numerous technical provisions related to presumptions and required notices, including the presumption of the intent to avoid payment, the notice required to create that rebuttable presumption, and the notice required to create criminal liability after demand for payment for services rendered.

The Penal Code classifies the Texas Theft of Service law under Title 7 “Offenses Against Property,” Chapter 31 “Theft.” Learn more about the Texas offense of Theft of Service below.

What is the current Texas law about Theft of Service?

AV Preeminent Texas lawyer Paul Saputo provides the current law defining Theft of Service in Penal Code Section §31.04, as follows:^[1]

(a) A person commits theft of service if, with intent to avoid payment for service that the actor knows is provided only for compensation:

(1) the actor intentionally or knowingly secures performance of the service by deception, threat, or false token;

(2) having control over the disposition of services of another to which the actor is not entitled, the actor intentionally or knowingly diverts the other’s services to the actor’s own benefit or to the benefit of another not entitled to the services;

(3) having control of personal property under a written rental agreement, the actor holds the property beyond the expiration of the rental period without the effective consent of the owner of the property, thereby depriving the owner of the property of its use in further rentals; or

(4) the actor intentionally or knowingly secures the performance of the service by agreeing to provide compensation and, after the service is rendered, fails to make full payment after receiving notice demanding payment.

This law has numerous technical provisions related to presumptions and notices. Subsection (b) covers presumptions about intent to avoid payment.^[2] Subsection (b-1) now sets the written-notice requirements for liability under Subsection (a)(4), including e-mail and text options.^[3] Subsection (c) governs the notice used to trigger the presumptions in Subsections (b)(2), (b)(4), and (b)(5).^[4] Finally, Subsection (d) contains receipt presumptions.^[5]

What is the penalty for a Texas Theft of Service offense?

The punishment for a conviction of Theft of Service can range anywhere from a Class C misdemeanor to a First Degree Felony. The value of the stolen service is the factor that determines how serious the punishment is, and it follows the same guidelines as the Theft offense.

If the value of service stolen is less than $100, then a conviction for Theft of Service is punished as a Class C misdemeanor,^[6] with a maximum possible fine under Texas state law of up to $500.

If the value of service stolen is $100 or more but less than $750, then a conviction for Theft of Service is punished as a Class B misdemeanor,^[7] with a maximum possible fine under Texas state law of up to $2,000 and jail time of up to 180 days.

If the value of service stolen is $750 or more but less than $2,500, then a conviction for Theft of Service is punished as a Class A misdemeanor,^[8] with a maximum possible fine under Texas state law of up to $4,000 and jail time of up to one year.

If the value of service stolen is $2,500 or more but less than $30,000, then a conviction for Theft of Service is punished as a state jail felony,^[9] with a maximum possible fine under Texas state law of up to $10,000 and jail time of up to two years.

If the value of service stolen is $30,000 or more but less than $150,000, then a conviction for Theft of Service is punished as a Felony of the Third Degree,^[10] with a maximum possible fine under Texas state law of up to $10,000 and prison time of up to 10 years.

If the value of service stolen is $150,000 or more but less than $300,000, then a conviction for Theft of Service is punished as a Felony of the Second Degree,^[11] with a maximum possible fine under Texas state law of up to $10,000 and prison time of up to 20 years.

If the value of service stolen is $300,000 or more then a conviction for Theft of Service is punished as a Felony of the First Degree,^[12] with a maximum possible fine under Texas state law of up to $10,000 and up to life in prison.

What changed in 2019?

In 2019, the legislature clarified how the Texas Theft of Service law applied in cases where the alleged theft was in connection to rental property. These changes included creating a rebuttable presumption of intent to avoid payment if you failed to return certain personal rent-to-own property within five business days after receiving notice demanding return; and you made fewer than three complete payments.^[13] In addition, the legislature allowed notice to be sent via commercial delivery service and added presumptions related to the receipt of notice.^[14]

What changed in 2023?

In 2023, the legislature added provisions to the Theft of Service statute that allow notice to be sent to the address shown on records of the person whose service was secured, or:^[15]

if the actor secured performance of service by issuing or passing a check or similar sight order for the payment of money, using the actor’s address shown on: (i) the check or order; or (ii) the records of the bank or other drawee on which the check or order is drawn.

What changed in 2025?

In 2025, the legislature added subsection (b-1) to create separate written-notice rules for liability under Subsection (a)(4), expressly allowing notice under those offense circumstances by e-mail or text message in lieu of registered or certified mail or a commercial delivery service.^[16]

The existing Subsection (c) notice rules now apply only to the presumptions of intent to avoid payment in Subsections (b)(2), (b)(4), and (b)(5),^[17] and Subsection (d) clarifies receipt presumptions for notices sent under (b-1) or (c).^[18]

Conduct before September 1, 2025 is governed by the prior law.^[19]

What is the correct notice for Theft of Service cases?

Under current Texas law, there are two written-notice frameworks for Theft of Service:

Demand-for-payment notice after services are rendered (the subsection (a)(4) “agree-to-pay then fail-to-pay” scenario; effective Sept. 1, 2025). The notice must be:^[20]

(1) in writing;

(2) sent by registered or certified mail with return receipt requested, commercial delivery service, e-mail, or text message; and

(3) sent to the actor using the actor’s mailing address, e-mail address, phone number, or other appropriate contact method shown on the rental/service agreement, the provider’s records, or (for checks) the address on the check or in the drawee’s records.

Presumption-triggering notice for rent-to-own and check-related presumptions in subsections (b)(2), (b)(4), and (b)(5). The notice must be:^[21]

((1) in writing;

((2) sent by registered or certified mail with return receipt requested, or by commercial delivery service; and

((3) sent to the actor using the actor’s mailing address shown on the rental/service agreement, the provider’s records, or (for checks) the address on the check or in the drawee’s records.

Receipt presumptions. If written notice is sent in accordance with Subsection (b-1) or (c), it is presumed received not later than two days after it is sent, except that for the rental-property presumptions in Subsections (b)(4)(A)–(B) and (b)(5) a five-day receipt presumption applies when notice is given under Subsection (c).^[22]

Receipt presumptions. When a proper written notice is sent using the delivery methods allowed by subsection (b-1) or (c) (for a post-service demand for payment: registered or certified mail with return receipt requested, commercial delivery service, e-mail, or text message; for rent-to-own and check-related presumptions: registered or certified mail with return receipt requested, or commercial delivery service), the law presumes the customer received it within two days of sending. For the rent-to-own/rental-property presumptions in subsections (b)(4)(A)–(B) and (b)(5) (for example, failure to return property after a demand or making fewer than three complete payments), a five-day receipt presumption applies when the notice is sent by registered or certified mail with return receipt requested or by commercial delivery service.^[23]

How can I be charged with a Theft of Service offense in Texas?

You can be charged with Theft of Service in Texas if the state’s attorneys believe that each of the elements of §31.04(a) as described in the section above have been met.

What is the statute of limitations for Theft of Service in Texas?

Misdemeanor Theft of Service charges have a two-year limitations period, and felony Theft of Service charges have a five-year limitations period.^[24]

Can you get probation for Theft of Service in Texas?

The Texas Code of Criminal Procedure allows both judges and juries to grant probation for Theft of Service, and judges are also allowed to accept deferred adjudication plea deals.^[25]

Note, however, that no matter the offense, neither judges nor juries may recommend community supervision for any suspended sentence of over 10 years.^[26] Also, judges may not grant community supervision after a conviction if (1) the defendant used or exhibited a deadly weapon during the commission of the felony or immediate flight thereafter and (2) the defendant used or exhibited the deadly weapon himself or was a party to the offense and knew that a deadly weapon would be used or exhibited.^[27]

What level of crime is Theft of Service in Texas?

The Penal Code classification of the punishment for Theft of Service ranges from a Class C misdemeanor to a first degree felony, depending on the value of the stolen services.

Learn more about the penalty range for this offense in the section above.

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Legal References:

^1. Texas Penal Code §31.04. This law is current as of 2025.^2. Texas Penal Code §31.04(b)^3. Texas Penal Code §31.04(b-1), as amended by HB 3463, 89th Texas Legislature (RS), Section 1^4. Texas Penal Code §31.04(c), as amended by HB 2897, 88th Texas Legislature (RS), Section 1 and HB 3463, 89th Texas Legislature (RS), Section 1^5. Texas Penal Code §31.04(d), as amended by HB 3463, 89th Texas Legislature (RS), Section 1^6. Texas Penal Code §31.04(e)(1)^7. Texas Penal Code §31.04(e)(2)^8. Texas Penal Code §31.04(e)(3)^9. Texas Penal Code §31.04(e)(4)^10. Texas Penal Code §31.04(e)(5)^11. Texas Penal Code §31.04(e)(6)^12. Texas Penal Code §31.04(e)(7)^13. HB 2524, 86th Texas Legislature, Section 1, effective September 1, 2019^14. HB 2524, 86th Texas Legislature, Section 1, effective September 1, 2019^15. Texas Penal Code §31.04(c)(3), as amended by HB 2897, 88th Texas Legislature, Section 1, effective September 1, 2023^16. Texas Penal Code §31.04(b-1), as amended by HB 3463, 89th Texas Legislature (RS), Section 1^17. Texas Penal Code §31.04(c)^18. Texas Penal Code §31.04(d), as amended by HB 3463, 89th Texas Legislature (RS), Section 1^19. HB 3463, 89th Texas Legislature (RS), Section 2^20. Texas Penal Code §31.04(b-1), as amended by HB 3463, 89th Texas Legislature (RS), Section 1^21. Texas Penal Code §31.04(c), as amended by HB 2897, 88th Texas Legislature (RS), Section 1 and HB 3463, 89th Texas Legislature (RS), Section 1^22. Texas Penal Code §31.04(d), as amended by HB 3463, 89th Texas Legislature (RS), Section 1^23. Texas Penal Code §31.04(d), as amended by HB 3463, 89th Texas Legislature (RS), Section 1^24. Code of Criminal Procedure 12.02(a); Code of Criminal Procedure 12.01(4)(A)^25. See Chapter 42A, Texas Code of Criminal Procedure, Art. 42A.054, Art. 42A.056, Art. 42A.102^26. Art. 42A.053(c), Texas Code of Criminal Procedure^27. Art. 42A.054(b), Texas Code of Criminal Procedure