Are membership fees for access to an unstaffed, automated self-service dog-wash facility taxable in Texas when its stations are permanently plumbed into the building?

Plain-English summary

Membership fees for access to this automated, customer-operated dog-wash facility were not subject to Texas sales and use tax.

The facility was unstaffed and open around the clock. Members entered through a mobile app, then held and positioned their dogs while automated stations controlled water, soap, rinsing, and blow drying. No employees performed or assisted with grooming, so the taxpayer was not providing taxable dog-grooming services.

The stations were permanently connected to the building's water and drain systems and could not be moved without significant construction. The Comptroller therefore treated them as improvements to real property rather than tangible personal property. Giving customers access was not a rental or lease of tangible personal property, and the taxpayer was not otherwise selling a taxable item.

What this means for you

The ruling turns on both parts of the arrangement: customers performed their own dog washing without staff assistance, and the automated stations were permanently affixed to the realty. Portable equipment, employee grooming assistance, or other materially different facts could change the analysis.

Common questions

Is dog grooming generally taxable in Texas? Yes, but the ruling said this taxpayer did not provide grooming because customers washed their own dogs and no employees performed or assisted with it.

Did app-based entry make the membership taxable? No. The ruling focused on what customers received and how the stations were installed, not on whether access credentials were digital.

Why was access to the equipment not a taxable lease? The stations were permanently plumbed into the building and treated as real-property improvements rather than tangible personal property.

Can another dog-wash operator rely on this PLR? No. The ruling binds the Comptroller only for the requesting taxpayer, issue, and stated facts.

Citations and references

• Tex. Tax Code §§ 151.051, 151.010, 151.009, 151.0101, 151.0101(a)(5), and 151.006(a)(2), as cited in the ruling.
• 34 Tex. Admin. Code § 3.292, as cited for taxable dog grooming.
• Comptroller's Decision No. 116,989 (2021), cited in the ruling for rental of real property connected to a taxable item.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/202606002L

Original ruling text

June 16, 2026

RE: Private Letter Ruling No. PLR20260327141513

**, **

Dear **:

We issue this private letter ruling in accordance with Rule 3.1, Private Letter Rulings and General Information Letters. [ENDNOTE 1] We are responding to your request dated March 23, 2026, and supplemental information dated April 11, 2026. Detrimental reliance relief is provided in accordance with Rule 3.10, Taxpayer Bill of Rights.

You requested guidance on the taxability of memberships sold for access to a fully self-serve, automated dog wash facility.

Facts Presented

** (Taxpayer) operates as an unstaffed, 24/7 self-service dog washing facility in Texas. Members access the building through a mobile app-based entry system. Upon purchasing a membership, customers receive access credentials linked to their membership account. Members use the mobile app to scan and unlock the facility door. Non-members may purchase single-use access through the app or online portal. No keycard or physical access code is issued. All access is managed digitally through the app.

The dog washing stations are fully automated. Instead of manually controlling water flow, soap dispensing, rinsing or blow drying, the customer selects and activates each function by pressing a button on the unit and the station automatically dispenses and operates the selected function. The customer’s role is to hold and position their dog while the machine controls all water and product delivery automatically. The dog washing stations are not portable. Taxpayer uses tubs which are permanently plumbed into the building’s water supply and drain system. The stations are not supplied via hose hookup and cannot be relocated without significant construction work. They are affixed improvements to the realty.

Question, Ruling, and Analysis

Your question is shown below, followed by our response and analysis.

Question: Are membership fees paid to access a self-serve, customer-operated automated dog washing facility subject to Texas sales tax?

Ruling: No, membership fees paid to access a facility with self-serve, customer-operated automated dog washing stations permanently affixed to the realty are not subject to sales and use tax.

Analysis: Texas imposes a tax on each sale of a taxable item in this state. Section 151.051 (Taxable Item). The term “taxable item” includes tangible personal property and taxable services. Section 151.010 (Taxable Item). “Tangible personal property” is personal property that can be seen, weighed, measured, felt, or touched or that is perceptible to the senses in any other manner. Section 151.009 (Tangible Personal Property). Only services specifically enumerated in Section 151.0101(“Taxable Services”) are taxable.

Dog grooming is a taxable service. See Section 151.0101(a)(5) and Rule 3.292 (Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property). Although dog grooming is a taxable service, Taxpayer does not provide grooming services. Customers independently wash their own dogs using automated equipment, and no employees perform or assist with the grooming.

A taxable sale includes the rental or lease of tangible personal property for consideration. Section 151.006(a)(2) (“Sale for Resale”). Taxpayer’s dog washing stations are permanently affixed to the real property. Because they are plumbed into the realty and cannot be removed without substantial construction, they constitute improvements to real property rather than tangible personal property. Consequently, providing access to these stations does not constitute a rental or lease of tangible personal property.

The charge for the rental of real property is not taxable unless the rental is connected to the sale of a taxable item. See Comptroller’s Decision No. 116,989 (2021). Taxpayer does not provide a taxable service, nor does it rent or lease tangible personal property. Accordingly, access to the automated dog washing stations is not subject to Texas sales and use tax.

Comptroller’s Decisions and STAR documents cited can be found on the Comptroller’s State Tax Automated Research (STAR) system. The Texas Tax Code, Texas Administrative Code, and the STAR system are accessible at www.comptroller.texas.gov/taxes/.

If you have questions about this private letter ruling, please email us through our website at https://comptroller.texas.gov/web-forms/tax-help/ and reference Private Letter Ruling No. 20260327141513.

Sincerely,

Tax Policy Division – Indirect Taxes

Texas Comptroller of Public Accounts

ENDNOTE

1 Unless otherwise indicated, all references to “Section” are to the Texas Tax Code, and all references to “Rule” are to Title 34 of the Texas Administrative Code.