Which vehicle-detailing charges were taxable, and how did the Comptroller correct its earlier answer?

Plain-English summary

The June letter corrected the Comptroller's April response. Installing a sun roof was taxable remodeling, including the entire charge for materials, parts, and labor. Retail sales of cleaners, chamois, and similar items were taxable. Carpet shampoo was taxable, but shampooing or detailing the vehicle interior was not.

The earlier letter treated hand washing, vacuuming, vinyl-roof cleaning or protection, wheel and whitewall cleaning, overspray removal, paint-protection treatment, and fabric-protection treatment as nontaxable. The provider paid tax on materials and supplies used in those nontaxable services.

STAR's metadata subject mentions aircraft and boats, but the reproduced ruling body discusses only motor-vehicle work and does not decide how the listed services apply to aircraft or boats.

Common questions

Was sun-roof installation taxable? Yes, as motor-vehicle remodeling. Was carpet shampoo taxable? Yes. Was full interior detailing taxable? No under the stated historical treatment. Could the shop buy supplies tax-free for nontaxable services? No; it paid tax on those supplies.

Citations and references

• 34 Tex. Admin. Code Rule 3.294 — referenced for sun-roof remodeling; the enclosure is absent from STAR's reproduced text.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8506L0642B11

Original ruling text

June 10, 1985

Dear ***:

A review of my letter of April 25, 1985, which was written in response to
several questions, revealed an error.

Your question #5 and #6 was:

5 I have not installed any sun roofs as yet, *** and I

know that this type service is taxable, also, if I sell my items
such as cleaners, chamois, etc. these items would be taxable, etc.

• The correct answers are:

The installation of a sun roof is considered to be remodeling and
the entire charge for materials, parts and labor is taxable. The
sale of cleaners, chamois, etc. are taxable. Enclosed is a copy of
Rule 3.294 for your reference.

6 Other services we provide are:

• Shampoo/detail interiors - is this taxable? (According to the
  field office, this is not) Not taxable

• Carpet shampoo - only service I've been told is taxable - is it?
  Taxable

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

April 25, 1985

Dear ***:

Thank you for your letter of April 12, 1985 concerning your tax
responsibility for ***** Shop.

On October 2, 1984, services to remodel a motor vehicle became taxable.
Services to repair, restore or maintain a motor vehicle is not taxable.
Listed below are your specific questions and the answers which should
clarify your tax responsibility:

1. All the various supply cleaning items that I purchase from retail
   outlets in ***, I pay taxes on and I plan to continue to do this.

This is correct procedure.

2. The supplies I order from *** in New York, I'll pay taxes on
   provided you don't tell me to tax "everything" like several other
   ** dealers are doing in the state of Texas. It seems that
   some dealers have called Austin and were told to tax all services;
   and in my discussing this with one of them, I feel that "taxing all
   services - everything" is the easy way out, but that this is unfair
   to the customer. Please comment on this for me, ****.

Tax should be paid on all materials and supplies used in performing your
non-taxable service.

3. Preserv-A-Shine Paint Protection. This service consists of washing
   the vehicle, cleaning the paint, and application of the Preserve-A-Shine
   paint protection. A warranty is issued against fading or loss of gloss
   and this warranty is limited and requires periodic reseals (re-do of the
   paint) at a service charge. Would this service be taxable, ***?

• Not taxable -- tax should be paid to your supplier on all supplies
  used in performing this service.

4 . Upholstery-Gard 2 fabric protection. This service consists
vacuuming of the interior, minor spot removal, and application of
the fabric protection. A warranty is issued against permanent
staining from normal spills of things your eat or drink. No further
annual is required; however, the customer know that after a period of
time, any interior may need cleaning just from normal wear and tear.
The cleaning may cost from nothing, to *** or **
dollars. Would thisservice be taxable, ****?

Same as #3.

6. Other services we provide are:

Car washing (by hand) - is this taxable? Not taxable

Vacuuming - is this taxable? Not taxable

Vinyl roof cleaning/protection - is this taxable? Not taxable

Wire wheel/whitewall/special cleaning, such as over-spray removal,
etc. - are these taxable? Not taxable

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, or call toll free 1-800-252-5555 from anywhere in Texas.

Sincerely,

Dot Burchard
Tax Administration Division