Ezel / Tax Rulings / TX
TX 8609L0761F12 Sales and/or Use Tax (State,Local,MTA) 1986-09-16

Were charges for cleaning and maintaining pleasure yachts and commercial vessels taxable?

Short answer: Charges for a noncommercial pleasure vessel were taxable, while the same services on a commercial vessel were not. The provider owed tax on equipment and consumable supplies, with resale treatment limited to items actually transferred to the customer.

Apply this to your situation

This page answers the general question as of 1986. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1986
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Texas treated cleaning or maintenance of a noncommercial pleasure vessel as taxable. The same service performed on a commercial vessel was not taxable.

The service provider could give a supplier a resale certificate only for items actually transferred to the customer as part of the service. The provider had to pay sales tax on its equipment and consumable supplies, including soap and wood or metal polishes, used to perform the work.

Common questions

Was cleaning a pleasure yacht taxable? Yes, when it was a noncommercial pleasure vessel.

Was the same work on a commercial vessel taxable? No.

Could the cleaner buy all supplies for resale? No. Resale treatment was limited to items actually transferred to the customer.

Who paid tax on soap and polish consumed in the work? The service provider.

Citations and references

  • The letter cited no numbered statute or Comptroller rule.

Source

Original ruling text

September 16, 1986

Dear **:

Thank you for your recent letter concerning your yacht cleaning service.

The charge for providing cleaning or maintenance of a non-commercial pleasure
vessel is taxable. You may issue a resale certificate to your supplier only for
those items actually transferred to your customer as a part of the service that
you provide. You must pay sales tax on all equipment and consumable supplies,
such as soap or wood and metal polishes, used to provide the service.

The same service performed on a commercial vessel is not taxable.

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

Please feel free to contact me if you have additional questions. You may write
me, call toll free 1-800-252-5555 from anywhere in Texas or phone 512/463-4600.

Sincerely,

Julie Pesl
Tax Policy Section
Tax Administration Division

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