Is a light-bulb-replacement maintenance service taxable in Texas if I only provide labor, not bulbs?

Subject

Lighting Maintenance Services — With Or Without Replacement Of Light Bulbs — Is Real Property Services

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9409L1315G07

Plain-English Summary

A company performed maintenance light-bulb changing but did not supply the bulbs themselves — it billed for labor only. The Texas Comptroller ruled that this service is still a taxable real property service. Rule 3.356(a)(7) specifically lists "lighting maintenance" as a real property service, and the ruling confirms that furnishing labor alone (with no materials) does not change that result. The company was told it was correct to collect sales tax on its total charge for the service.

What This Means For You

Building maintenance and facilities-service companies

If you perform lighting maintenance — including simply changing out burned-out bulbs — for a customer's building, that service is taxable in Texas as a real property service, whether or not you also sell the bulbs. Charging separately for labor only does not make the service exempt; you must collect sales tax on your total charge.

Accountants and tax professionals

This ruling is a reminder that Texas taxes many real property services (per 34 Tex. Admin. Code Rule 3.356) based on the nature of the service performed, not on whether tangible personal property (like light bulbs) changes hands. A labor-only billing structure does not convert a taxable real property service into a nontaxable pure labor arrangement.

Q&A

Q: I only provide labor to replace burned-out light bulbs — I don't sell or furnish the bulbs. Is that taxable?
A: Yes. The Comptroller ruled that lighting maintenance, including bulb replacement, is a taxable real property service under Rule 3.356(a)(7), regardless of whether you furnish the bulbs or only provide labor.

Q: Do I need to charge sales tax on my whole invoice, or just on materials?
A: You collect sales tax on your total charge for the real property service, including labor, since the entire service is taxable.

Q: Does this ruling apply to every facility or every customer?
A: This letter ruling is based on the specific facts submitted by this taxpayer. Other facts, though similar, may yield different results, and only the taxpayer to whom it was issued can rely on it for detrimental-reliance purposes.

Citations

• 34 Tex. Admin. Code Rule 3.356(a)(7) (lighting maintenance as a real property service)

Original ruling text

September 9, 1994

Dear **:

Thank you for your September 4, 1994, letter concerning the taxability of
light bulb replacement services.

You do maintenance light bulb changing for the **. You do not furnish
the light bulbs. You provide labor only.

The light bulb replacement service for ** is a taxable real property
service even if you only provide labor. The enclosed Rule 3.356(a)(7)
specifically mentions lighting maintenance as a real property service. You are
correct to collect sales tax on your total charge for the real property service.

This opinion is based on the facts you submitted. Other facts, though similar,
may yield different results.

You may call me toll free at l-800-531-5441, ext. 5-0030. The direct line is
512/475-0030. You may also write to Tax Administration, Comptroller of Public
Accounts.

Sincerely,

David Somerville
Tax Administration Division

NOTE: Previous Accession Number 9409579L