Is cleaning/washing a trailer tank after hauling liquid chemicals a taxable service in Texas, and can the cleaning chemicals and required safety gear be bought tax free?

Plain-English summary

A tax professional wrote to the Texas Comptroller's Tax Policy Division on behalf of a client who transports liquid chemicals in a trailer tank (a motor vehicle). Because the tank must be cleaned after each load is emptied to avoid contaminating the next load, the requester asked three questions about how sales tax applies to that cleaning process.

The Comptroller's answers were short and direct. First, cleaning the trailer tank is not a taxable service, because maintenance to a motor vehicle is not taxable in Texas. Second, the client cannot buy the chemicals used to clean the trailers tax free — the letter explains that all taxable items purchased for the client's own use, or for use in providing a nontaxable service, are themselves taxable. Third, safety equipment such as acid suits, gloves, and goggles — even though required by federal OSHA regulations — also cannot be purchased tax free.

In short: the cleaning service itself escapes tax because it's vehicle maintenance, but everything the client buys to perform that cleaning (cleaning chemicals and safety gear) is a taxable purchase, regardless of any OSHA requirement to use it.

What this means for you

Trucking and chemical-hauling businesses

If you (or your client) operate trailer tanks that must be washed out between loads, the washing/cleaning labor itself is treated as nontaxable motor vehicle maintenance. You don't need to charge or collect sales tax on that cleaning service.

Purchasing cleaning supplies and safety equipment

Don't assume that supplies used to perform a nontaxable service are automatically tax-exempt. This letter makes clear that cleaning chemicals purchased to wash the tanks are taxable, and so is required safety gear like acid suits, gloves, and goggles — even though OSHA regulations may require you to use that gear. A federal safety mandate doesn't create a Texas sales tax exemption.

Accountants and tax professionals

This letter is a useful, narrow illustration of a common Texas sales tax pattern: a service can be nontaxable (here, motor vehicle maintenance) while the tangible personal property consumed to perform it (cleaning chemicals, safety equipment) remains fully taxable to the purchaser as the end consumer.

Common questions

Q: Is washing out a chemical trailer tank between loads taxable in Texas?
A: No. The Comptroller stated that maintenance to a motor vehicle is not taxable, and cleaning the trailer tank falls under that category.

Q: Can the chemicals used to clean the trailer tanks be bought tax free?
A: No. The letter says all taxable items purchased for the client's use, or for use in providing a nontaxable service, are taxable.

Q: Does an OSHA safety requirement make safety equipment tax exempt?
A: No. The letter specifically addressed acid suits, gloves, and goggles required by OSHA and confirmed they cannot be purchased tax free.

Q: Can another business rely on this letter?
A: This opinion is based on the facts presented to the Comptroller's office; if there are any additional or different facts, the opinion may change.

Citations and references

No specific statutes or administrative rules were cited in the text of this letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9511756L

Original ruling text

November 27, 1995

Dear ****:

Thank you for your letter of November 20, 1995. You asked that we address the
taxability of the following situation.

Your client transports liquid chemicals in a trailer tank (a motor vehicle).
The trailer tank must be cleaned after each load is emptied to avoid
contaminating the next load. You asked:

(1) Is the trailer tank cleaning a taxable service?

Response: No. Maintenance to a motor vehicle is not taxable.

(2) Can the client purchase the chemicals used to clean the trailers tax free?

Response: No. All taxable items purchased for the client's use or for use to
provide a nontaxable service are taxable.

(3) Can the client purchase safety equipment such as acid suits, gloves,
goggles, etc. if required by federal OSHA regulations (tax free) [sic]?

Response: No.

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

You may call me toll free at 1-800-531-5441, ext. 5-0037. The direct line is
512/475-0037. You also may write to Sales Tax Policy Division, Comptroller of
Public Accounts.

Sincerely,

Lindey Osborne
Sales Tax Policy Division