Ezel / Tax Rulings / TX
TX 8709L0832E03 Sales and/or Use Tax (State,Local,MTA) 1987-09-16

When did Texas begin taxing janitorial and custodial services, and how was the tax charged?

Short answer: October 1, 1987. The provider had to add the appropriate location-based tax rate to its service charge and complete a sales-tax application.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
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 a taxpayer-specific September 1987 Texas Comptroller letter about janitorial and custodial services becoming taxable on October 1, 1987. It says the opinion may change if the facts differ. The answer is historical and does not establish current rates or exceptions; verify current law. STAR's caption mentions commercial and residential locations, but the body does not distinguish them. STAR documents may no longer represent current policy even when not marked superseded. Identities are redacted. This summary is informational only and is not legal or tax advice.
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 Comptroller said janitorial and custodial services became taxable real property services on October 1, 1987. The provider was to charge the appropriate rate for its location, add tax to the customer service charge, and complete the enclosed sales-tax application.

What this means for you

The historical letter identifies the effective date and basic collection method. It does not distinguish commercial from residential work despite STAR's caption.

Common questions

When did the services become taxable? October 1, 1987.

What amount did tax apply to? The provider's charge to the customer.

Did the body separately analyze residential work? No.

Citations and references

  • No statute or rule number is cited in the ruling text.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

September 16, 1987

Dear *****:

Thank you for your letter concerning the taxability of your business.

Janitorial and custodial services are taxable under the Real Property
Service section of the Limited Sales, Excise and Use Tax law effective
October 1, 1987. The appropriate tax rate should be charged for your
location. The tax that you collect is applied to your charge to your
customer. Tax is added on to the charge of your services.

Enclosed is a sales tax application that needs to be completed and
returned. If you need help with the application, or in determining the
correct tax rate you can call the Comptroller's office nearest you at
(713) 591-8610.

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

If you have any questions or need more information, please call me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Policy Division.

Sincerely,
Curt Swenson
Tax Policy Division

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