Were cleanroom cleaning and day labor cleaning common areas exempt manufacturing services?

Plain-English summary

The combined STAR record contains two janitorial rulings. The June 26 letter taxed laundry, surface and vent cleaning, and inspection for a Class 10 manufacturing cleanroom because the work was not performed directly on the manufactured product or on equipment legally required for public health or pollution control.

The June 9 letter separately taxed day labor used to clean and check restrooms, cafeterias, and common areas. Rule 3.356 treated that work as building cleaning, janitorial, or custodial service even though the workers operated under the hiring company's direction.

Common questions

Did the manufacturing setting exempt the cleanroom services? No.

Was directed day labor for common-area cleaning taxable? Yes.

What work did the manufacturing discussion exclude? Services performed directly on the product or on legally required public-health or pollution-control equipment were not the facts presented.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8906L0943B12

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

June 26, 1989

Dear ***:

Your letter dated June 21, 1989 to Jo Ann Dieck was forwarded to
me for a response.

You asked for a ruling on the taxability of janitorial services
that your employee provides in the situation you described as
follows:

Air quality control of Class 10 - Clean room used
in the manufacture of parts for resale; laundry,
surface and vent cleaning and inspection

Response: These services are taxable. The sales tax law does
provide certain exemptions for manufacturers; however, the jani-
torial services that you described are not included. Please
refer to section (c) and (d) of Rule 3.300. Your employee is not
performing services directly on the product manufactured or on
equipment that is required by law for public health or pollution
control.

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 any additional questions.
You may write me, call toll-free 1-800-531-5441 from anywhere in the
United States or phone 512/463-4685.

Sincerely,
Julie Pesl
Tax Correspondence

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

June 9, 1989

Dear ***:

Thank you for your recent letter concerning the taxability of the
janitorial
and cleaning services your company provides.

Question: "Is sales tax applicable when we are providing day labor to the
same companies for which we are providing night-time janitorial
services?"
You stated the day labor works under the direction of the hiring company,
but is primarily engaged in cleaning and checking restrooms, cafeteria
and
common areas."

Answer: Sales tax is due on the day labor for cleaning and checking
restrooms,
cafeteria and common areas. Rule 3.356, Real Property Service (a)(1)
defines
building or ground cleaning, janitorial, or custodial services as the
activi-
ties of keeping the premises of a building clean, orderly, and
functional,
including performing minor adjustments, maintenance, or repair. Examples
in-
clude,....the cleaning, disinfecting, and restocking of restrooms or
lounge
areas....

A copy of Rule 3.356, Real Property Services, is enclosed for your
information.

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 our
toll-free
number 1-800-252-5555. The regular number is 512/463-4600. You may
write me
at Tax Correspondence, Comptroller of Public Accounts.

Sincerely,
Jo Ann Dieck
Tax Correspondence