Is cleaning acoustical tile ceilings a taxable service in Texas, and does the cleaning company owe tax on the cleaner it buys?

Subject

Acoustical Tile Ceiling Cleaning Is A Taxable Building Cleaning Service

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9307L1253A04

Plain-English Summary

A taxpayer wrote to the Comptroller asking about the taxability of the acoustical tile ceiling cleaning service they were going to provide to their customers. The Comptroller's response is short and direct: the service is a taxable building cleaning service, and the taxpayer was correct to charge their customer tax on the service.

The letter also addresses the other side of the transaction — the cleaning product itself. The taxpayer, as the provider of the service, owes tax on the cleaner at the time they purchase it. The letter enclosed a copy of Rule 3.356, Real Property Service, for the taxpayer's review, and closed with the standard note that the opinion is based on the facts presented and could change if the facts are different.

What This Means For You

Building cleaning is a taxable service in Texas. This letter confirms that cleaning acoustical tile ceilings falls under the taxable building cleaning service category, referencing Rule 3.356 - Real Property Service. If you provide this kind of cleaning service to customers, you should be charging sales tax on your charge to them.

You also owe tax on your supplies. The letter is clear that the service provider owes tax on the cleaner (the cleaning product) at the time of purchase, in addition to collecting tax from the customer on the service itself. This means the transaction has two separate tax obligations: tax the provider pays on their own supplies, and tax the provider collects from the customer for the service.

This letter is fact-specific. The Comptroller notes the opinion is based on the facts presented, and that different or additional facts could change the outcome — so if your situation differs from acoustical tile ceiling cleaning specifically, don't assume the same answer applies without checking.

Q&A

Q: Is cleaning acoustical tile ceilings a taxable service in Texas?
A: Yes. The letter states this is a taxable building cleaning service.

Q: Should the cleaning company charge its customers sales tax on the cleaning service?
A: Yes. The letter tells the taxpayer they are "correct in charging tax to your customer for the service you provide."

Q: Does the cleaning company also owe tax on the cleaning products it buys?
A: Yes. The letter states the taxpayer "also owe[s] tax on the cleaner at the time of your purchase."

Q: What rule does the Comptroller cite for this answer?
A: Rule 3.356, Real Property Service, which the letter enclosed for the taxpayer's review.

Q: Does this letter apply if my facts are different?
A: Not necessarily. The letter states the opinion is based on the facts presented, and that the opinion could change if there are additional or different facts.

Original ruling text

July 20, 1993

Dear **:

I have received your letter regarding the taxability of the acoustical
tile ceiling cleaning service you will be providing your customers.

You are providing a taxable building cleaning service and you are
correct in charging tax to your customer for the service your provide.
You also owe tax on the cleaner at the time of your purchase.

Enclosed is a copy of Rule 3.356, Real Property Service, for your
review.

This opinion is based on the facts presented. If there are additional
or different facts, the opinion could change.

If you have any questions, please don't hesitate to write the Tax
Administration Division or call one of our tax specialists toll free
at 1-800-252-5555.

Sincerely,

J Hale
Tax Administration Division

NOTE: Previous Accession Number 93070069L.2 and/or 9307069L