How did Texas tax swimming-pool cleaning, maintenance, minor equipment work, and separately performed significant repairs under this December 1987 letter?

Plain-English summary

The Comptroller said swimming-pool cleaning and maintenance became taxable on October 1, 1987. Tax applied to the total amount billed. Minor adjustments, maintenance, or repairs to the pump, filter, or heating system were also taxable when performed as part of the cleaning service.

At the time of the letter, separately charged labor for significant repairs to the pool or that equipment did not require tax collection. The letter then said that, beginning January 1, 1988, the total charge to repair commercial pools—including the pump, filter, and heating system—would be taxable.

What this means for you

The historical treatment depended on whether equipment work was part of the taxable cleaning service, was a separately charged significant repair, or was a commercial-pool repair after the January 1, 1988 change.

Common questions

When did the letter say pool cleaning and maintenance became taxable? October 1, 1987.

Were minor pump, filter, or heating-system repairs taxable? Yes, when done as part of the cleaning service.

Were separately charged significant-repair labor charges taxable when the letter was issued? No.

What changed on January 1, 1988? The total charge to repair commercial pools and the identified equipment became taxable.

Is the letter's 6% state rate current? No conclusion about the current rate should be drawn from it; that is the historical rate printed in the December 1987 letter.

Citations and references

• No statute or administrative rule is cited in the letter 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/8712L0853D13

Original ruling text

December 11, 1987

Dear ***:

Thank you for your letter regarding your sales tax responsibilities in
Texas.

Swimming pool cleaning and maintenance became taxable October 1, 1987.
You should collect 6% state tax plus any city, MTA or other local tax on
the total amount you bill for cleaning and maintaining the pool. Tax is
also due on your charge to do minor adjustments, maintenance, or repairs
to the pump, filter or heating system, when it's done as a part of your
cleaning service.

You don't need to collect tax on separate charges for labor when you do
significant repairs on the pool, pump, filter or the heating system.
But on January 1, 1988, your total charge to repair commercial pools
(including the pump, filter and the heating system) will be taxable.

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