Were the advertised services of a Texas skin-care clinic taxable, or was the clinic treated as a massage parlor?

Plain-English summary

The Texas Comptroller reviewed a skin-care clinic's printed advertisement and concluded that none of the advertised services were taxable under the state sales tax.

The Comptroller also found that the business was not primarily engaged in offering massages. As a result, the law and rulings applicable to massage parlors did not apply to it.

STAR's official subject label identifies the clinic's services as facials, makeup, hair removal, and manicures. The ruling body does not separately analyze those services; it gives one answer for the advertised services as a group.

What this means for you

Skin-care and beauty businesses

Under this 1985 ruling, the clinic's advertised service mix was nontaxable, and incidental or nonprimary massage activity did not make it a massage parlor.

Accountants and tax professionals

The letter is brief and fact-specific. It does not provide a test for when massage becomes a business's primary activity or address product sales.

Consumers

The ruling addressed charges for the clinic's advertised services, not purchases of cosmetics or other tangible products.

Common questions

Q: Which services appear in STAR's subject label?
A: Facials, makeup, hair removal, and manicures.

Q: Did the letter separately analyze each service?
A: No. It said none of the advertised services were taxable.

Q: Was the clinic treated as a massage parlor?
A: No. The Comptroller found that it was not primarily engaged in offering massages.

Q: Did the ruling address retail product sales?
A: No. It addressed the services in the clinic's advertisement.

Citations and references

The letter did not cite a specific statute or administrative rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8501L0616C06

Original ruling text

January 10, 1985

To Whom It May Concern:

We have received your printed advertisement listing the services offered
at your place of business.

None of the services offered are taxable under the state sales tax. In
our judgement, your business is not primarily engaged in offering
massages and would therefore, not be subject to the law and rulings
pertaining to massage parlors.

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

You may write to the Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division