Which janitorial supplies could be bought tax-free, and could a janitorial company issue resale certificates to taxable-service subcontractors?

Plain-English summary

Janitorial supplies transferred to the customer could be purchased tax-free. The letter gave trash containers and floor wax as examples. General cleaning supplies consumed in the work, such as window cleaner, were taxable to the janitorial company when purchased.

The company could issue resale certificates to subcontractors for trash hauling, window cleaning, and carpet cleaning that it rebilled to customers. The subcontractors had to hold sales tax permits, and the ultimate consumer had to be charged tax on all those listed services.

What this means for you

The historical distinction turned on whether property transferred to the customer or was consumed by the service provider. Subcontracted taxable services could pass through for resale, but tax still applied at the final customer level.

Common questions

Could floor wax be bought tax-free? Yes, because the letter treated it as transferred to the customer.

What about window cleaner? It was taxable to the janitorial company at purchase because it was not transferred.

Could subcontracted cleaning services be bought for resale? Yes, with a resale certificate.

Did the subcontractors need permits? Yes.

Citations and references

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

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8710L0844E13

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

October 27, 1987

Dear **:

Thank you for your letter concerning the taxability of janitorial
services in
your business activities.

You asked if you may be exempt from paying sales tax to vendors on
supplies
which are used in the janitorial process.

Answer: Supplies that are transferred to your customer can be purchased
tax free. For example, trash containers and floor wax. General cleaning
supplies such as window cleaners are not transferred to your customer and
are taxable to you at purchase.

You also asked if charges by your subcontractors including but not
limited to
trash hauling, window cleaning and carpet cleaning would be exempt from
payment of sales tax as these services well be rebilled to your
customers.

Answer: Yes. A resale certificate can be issued to your subcontractors.
The subcontractors must be permitted for sales tax. All services listed
are taxable and should be taxed to the ultimate consumer.

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,
(Mrs.) Jo Ann Dieck
Tax Policy Division