Is power/pressure washing taxable in Texas, and does it matter whether you're washing a motor vehicle, other tangible personal property, or a building/sidewalk/parking lot?

Plain-English summary

Someone starting a pressure-washing business asked the Comptroller how Texas sales tax applies to their work. The answer splits three ways depending on what's being washed:

Motor vehicles — power washing a motor vehicle is not taxable. The letter specifically lists tractor-trailer rigs, commercially used vans, armored vehicles and vans, tree-trimming vehicles, and bread vans as examples of "motor vehicles" covered by this exemption.

Other tangible personal property — pressure washing items that are not motor vehicles is taxable, treated as the restoration or maintenance of tangible personal property under Rule 3.292.

Improvements to realty — pressure washing buildings, and specifically sidewalks and parking lots, is taxable as building and grounds cleaning under Rule 3.356.

What this means for you

Pressure washing and car wash businesses

Know which bucket your job falls into before you invoice. Washing motor vehicles is untaxed; washing other equipment or property is taxed as TPP maintenance; washing buildings, sidewalks, or parking lots is taxed as building and grounds cleaning. A single business offering all three service types needs to track and tax them differently.

Fleet operators and commercial vehicle owners

If your washing charges are limited to motor vehicles as defined here (including specialized commercial vehicles like tractor-trailers, armored vans, and tree-trimming trucks), those charges should not carry Texas sales tax.

Accountants and tax professionals

This letter is a clean three-way split reference for pressure-washing taxability: Rule 3.292 (TPP maintenance) for non-vehicle property, Rule 3.356 (building and grounds cleaning) for realty/sidewalks/parking lots, and a specific carve-out for motor vehicle washing that isn't taxed under either rule.

Common questions

Q: Is washing my company's delivery van or tractor-trailer taxable in Texas?
A: No — power washing a motor vehicle (the letter lists tractor-trailer rigs, commercial vans, armored vehicles, tree-trimming vehicles, and bread vans as examples) is not taxable.

Q: Is pressure washing equipment that isn't a vehicle taxable?
A: Yes, as the restoration or maintenance of tangible personal property under Rule 3.292.

Q: Is pressure washing a sidewalk or parking lot taxable?
A: Yes, as building and grounds cleaning under Rule 3.356.

Citations and references

Statutes and rules:

• 34 Tex. Admin. Code Rule 3.292 (maintenance of tangible personal property)
• 34 Tex. Admin. Code Rule 3.356 (building and grounds cleaning 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/200006386L

Original ruling text

June 7, 2000

From: Bettie Peterson
[email protected]

To: **

Subject: Texas state tax on Pressure Washing business

Thank you for your recent email.

A charge for power washing a motor vehicle is not taxable. Motor vehicles
include tractor-trailer rigs, commercially used vans, armored vehicles, armored
vans, tree trimming vehicles, and bread vans.

Pressure washing tangible personal property is taxable as the restoration or
maintenance of tangible personal property. See Rule 3.292. Pressure washing
improvements to realty is taxable as building or grounds cleaning. Sidewalk and
parking lot washing is also taxed as building and grounds cleaning. See Rule
3.356.

If you have other areas you would like for me to address, please send them to
me. Rule 3.286 explains sales tax reports, etc. Please contact me again if you
have specific questions.

Referenced rules are available at
http://www.window.state.tx.us/taxinfo/rulendx/ruleindex.html.

The State Tax Automated Research system, that provides viewing and downloading
of rules, edited letter rulings, hearings, AG Opinions, etc., may be accessed
on the Internet at: http://www.window.state.tx.us/

This opinion is based on the facts you submitted and current law. Other facts
though similar, may result in different answers.

If you have questions or need more information, I will be glad to help you. You
may call me toll free from anywhere in the United States at 1-800-531-5441,
extension 5-0330.