When were sales, installation, and repair of blinds, drapes, or shades taxable under Texas's 1988 rules?

Plain-English summary

The Comptroller said sales tax applied when the requester sold and installed blinds, drapes, or shades in either residential or nonresidential real property. Sales without installation were also taxable, as were repairs to those items.

Installation was not taxable when the installer did not sell the blinds, drapes, or shades. When repairing items for a retailer that would bill the end customer, the provider could accept a resale certificate under Rule 3.285.

The letter tied its conclusions to historical changes effective October 1, 1987 for seller-billed installation and January 1, 1988 for nonresidential real-property repair or remodeling. It also stated that tangible-personal-property repair labor had been taxable since October 2, 1984.

What this means for you

Under the 1988 guidance, who sold the window covering mattered for installation labor. Seller installation was taxable; installation-only work on customer-provided items was not.

Common questions

Was selling and installing blinds taxable? Yes, on residential or commercial property.

Was installation taxable if the installer did not sell the items? No.

Were repairs taxable? Yes.

Could repair work bought for resale use a resale certificate? Yes, in the retailer arrangement described.

Citations and references

• 34 Tex. Admin. Code Rule 3.285, enclosed for resale certificates.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8803L0864A08

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

March 28, 1988

Dear **:

I'm writing in response to our recent phone conversation.

There were two recent legislative changes that will affect your business.

• Effective October 1, 1987, charges for labor to install tangible
  property became taxable if the seller of the property bills the customer
  for the installation.

• Effective January 1, 1988, labor to repair or remodel nonresidential
  improvements to realty became taxable.

You must charge sales tax when you:

• Sell and install blinds, drapes, or shades in real property
  (either residential or nonresidential);

• Repair blinds, drapes or shades (labor to repair tangible
  personal property has been taxable since October 2, 1984);

• Sell blinds, drapes, or shades without installation.

You are not required to charge sales tax to your customers when you
install
blinds, drapes or shades which you did not sell.

When you do repairs for retailers who will bill their customers for the
work, you may accept a resale certificate in lieu of tax. I am enclosing
Rule 3.285 and a sample resale certificate for your use.

Feel free to call me if you have other questions. My toll-free number is
1-800-531-5441.

Sincerely,
Al Van Allen
Tax Policy Division