Ezel / Tax Rulings / TX
TX 8409L0603D10 Sales and/or Use Tax (State,Local,MTA) 1984-09-04

Which professional and personal services did Texas say would or would not be taxable under the October 2, 1984 law changes?

Short answer: Doctor, accounting, and legal fees were not taxable under the October 2, 1984 changes. Group 721 laundry, cleaning, and garment services, plus massage parlors, escort services, and Turkish baths, were taxable. Labor to repair or remodel a taxable item was also taxable.

Apply this to your situation

This page answers the general question as of 1984. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1984
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The October 2, 1984 changes did not tax doctor, accounting, or legal fees.

They did tax personal services classified in SIC Group 721 (laundry, cleaning, and garment services), as well as massage parlors, escort services, and Turkish baths. Labor charges for repairing or remodeling a taxable item were also taxable.

What this means for you

The letter drew a direct line between untaxed professional fees and specifically listed taxable personal and repair services.

Common questions

Q: Were legal and accounting fees taxable? A: No.

Q: Were laundry and garment services taxable? A: Yes, when classified in SIC Group 721.

Q: Was labor to repair a taxable item taxable? A: Yes.

Citations and references

  • Standard Industrial Classification Manual 1972, Major Group 72, Group 721.

Source

Original ruling text

September 4, 1984

Dear ***:

Thank you for your July 24, 1984 letter regarding the application of
sales tax to certain services when the changes to the law become
effective October 2, 1984.

Doctor, accounting and legal fees will not be taxable under the
October 2, 1984 changes to the law.

Under the new law, individuals providing personal services classified
under Group 721 (laundry, cleaning and garment services) of Major
Group 72 of the Standard Industrial Classification (SIC) Manual 1972,
will be subject to sales tax. Services provided by massage parlors,
escort services and Turkish baths will be taxable.

Labor charges for repairing or remodeling a taxable item will be
taxable under the new changes to the law.

The enclosed bulletin lists other services and businesses that will
be affected by the changes.

Please feel free to contact me if you have additional questions. You
may write me or call toll-free 1-800-252-5555 from anywhere in Texas.

Sincerely,

Eddie C. Washington
Tax Administration Division

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