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Ezel / Tax Rulings / TX
TX 8409L0590B08 Sales and/or Use Tax (State,Local,MTA) 1984-09-14

How did Texas's October 2, 1984 change tax carpet, rug, drapery, and garment cleaning or repair charges?

Short answer: Charges to clean or repair carpet, drapery, and garments became taxable October 2, 1984, including rug and carpet cleaning at the customer's premises or the provider's plant. One-time customer logo charges were also taxable.

Apply this to your situation

This page answers the general question as of 1984. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1984
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Texas Comptroller said charges to clean or repair carpet, drapery, and garments became taxable for the first time on October 2, 1984.

Tax applied to the amount charged for cleaning rugs and carpet whether the work occurred at the customer's premises or at the provider's plant.

The letter stated historical Houston rates of 4 1/8% state, 1% city, and 1% Metropolitan Transit Authority tax. It said the tax responsibility for carpet sale and installation and mat and mop sales or rentals did not change, without restating that treatment. One-time customer logo charges had always been taxable.

What this means for you

Carpet and textile cleaners

The location of the cleaning did not change the historical tax result.

Mat, mop, and carpet businesses

The letter did not re-explain the existing treatment of sales, installation, or rentals, so no additional holding should be inferred.

Accountants and tax professionals

All printed rates are historical. Verify current cleaning, repair, logo, rental, installation, and local-tax rules.

Common questions

Q: When did the cleaning and repair charges become taxable?
A: October 2, 1984.

Q: Did it matter whether carpet cleaning occurred on-site or at the plant?
A: No.

Q: Were one-time customer logo charges taxable?
A: Yes.

Q: Are the printed rates current?
A: No. They are historical rates from the 1984 letter.

Citations and references

  • The letter refers to an act of the Texas Legislature but does not identify it.

Source

Original ruling text

September 14, 1984

Dear **:

Thank you for your letter dated August 31, 1984.

Beginning October 2, 1984, charges to clean or repair carpet, drapery
and garments will be taxed for the first time ever.

This is an act of the Texas Legislature.

The tax rate will be four and one-eighth (4 1/8) percent state, one (1)
percent city and one (1) percent mass transit authority tax in
Houston for all services and sales.

Tax is due on the amount you charge your customer to clean rugs and
carpet at their premises or at your plant.

Your tax responsibility on the sale and installation of carpet and the
mats and mops sales and rental did not change.

Tax was always due on the one time customer logo charge you made to your
customers.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact me if you have additional questions. You
may write me or call toll-free 1-800-252-5555 from anywhere in Texas.

Sincerely,

Tom Gay
Tax Policy Section
Tax Administration Division

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