Ezel / Tax Rulings / TX
TX 8711L0850B01 Sales and/or Use Tax (State,Local,MTA) 1987-12-11

When did Texas treat labor to repair installed wall-to-wall carpet as taxable for commercial and residential buildings?

Short answer: The letter said on-site repair of carpet in commercial buildings would become taxable January 1, 1988, while on-site repair in residences would remain nontaxable. Repair labor performed at a repair plant had already become taxable in October 1984.

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 December 1987 Texas Comptroller letter based on the described carpet-repair facts. It says the opinion may change if the facts differ. The October 1984 and January 1, 1988 effective dates and the letter's carpet and real-property repair classifications are historical and may have changed substantially; verify current law. The letter discusses repair labor, not every charge connected with carpet replacement or installation. STAR documents may no longer represent current policy even when not marked superseded.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 treated wall-to-wall carpet as an improvement to real estate. Labor to repair the carpet in the building where it was installed had not been taxable, while labor performed at a repair plant had been taxable since October 1984.

The letter said that beginning January 1, 1988, on-site carpet repair in commercial buildings would be taxable because labor to repair or remodel nonresidential real-property improvements would become taxable. On-site repair in residences would remain nontaxable.

What this means for you

The historical result depended on both where the repair occurred and whether the installed carpet was in commercial or residential property. The letter does not provide a complete rule for carpet replacement or original installation charges.

Common questions

How did the letter classify wall-to-wall carpet? As an improvement to real estate.

Was on-site commercial carpet repair taxable? The letter said it would become taxable January 1, 1988.

Was on-site residential carpet repair taxable? No. The letter said it would remain nontaxable.

What about repair work performed at a repair plant? The letter said that labor had become taxable in October 1984.

Citations and references

  • 34 Tex. Admin. Code Rule 3.357 — historical rule enclosed for reference by the Comptroller.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller December 11, 1987

Gentlemen:

Thank you for your recent letter regarding carpet installation and
repair.

Wall to wall carpet is considered an improvement to real estate and labor
to
repair it in the building in which it is installed has not been taxable.
Labor to repair carpet in a repair plant became taxable in October of
1984.

Effective January 1, 1988 labor to repair or remodel nonresidential
improvements to realty will become taxable. Therefore on site repair of
carpet in commercial buildings will become taxable. On site repair of
carpet
in residences will remain nontaxable.

I am enclosing Rule 3.357 for your reference.

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,
Al Van Allen
Tax Policy Division

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