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Ezel / Tax Rulings / TX
TX 8412L0632E13 Sales and/or Use Tax (State,Local,MTA) 1984-12-05

Did a Texas hotel have to collect sales tax on laundry and dry-cleaning services sold to guests?

Short answer: Yes. The hotel had to collect tax from guests for laundry and dry-cleaning services, but it could give an outside vendor a resale certificate instead of paying tax to that vendor.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 sales tax was due on laundry and dry-cleaning services that a hotel provided to its guests after personal services became taxable on October 2, 1984.

The hotel could issue a resale certificate to an outside laundry or dry-cleaning vendor instead of paying tax to that vendor. The hotel then had to collect tax from its guest.

What this means for you

Hotels

Treat laundry and dry-cleaning charges to guests as taxable under this letter and collect the tax from the guest.

Outside laundry and dry-cleaning vendors

The hotel could provide a resale certificate when it bought the service for resale to its guest.

Accountants and tax professionals

Keep the resale purchase from the vendor separate from the hotel's taxable retail charge to the guest, and retain the resale certificate.

Common questions

Q: Were hotel laundry charges to guests taxable?
A: Yes.

Q: Were hotel dry-cleaning charges to guests taxable?
A: Yes.

Q: Did the hotel have to pay tax to an outside vendor and also collect tax from the guest?
A: The letter allowed the hotel to give the outside vendor a resale certificate instead of tax, while requiring the hotel to collect tax from the guest.

Citations and references

  • The letter identifies October 2, 1984 as the date personal services became taxable, but it does not provide a statute or rule number.

Source

Original ruling text

December 5, 1984

Dear ***:

Thank you for your letter of November 19, 1984, concerning the
taxability of laundry and dry cleaning services provided to hotel
guests.

October 2, 1984, personal services became taxable; therefore, sales
tax is due on laundry and dry cleaning services you provide to hotel
guests. You may issue a resale certificate to an outside vendor, in
lieu of tax. You must collect tax from your customer.

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 us if you have additional questions. You
may write us, call toll free 1-800-252-5555 from anywhere in Texas.

Sincerely,

Tax Policy Section
Tax Administration Division

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