Were carwash sand-trap and restaurant grease-trap pumping charges taxable, and could scheduled preventive service qualify as maintenance?

Plain-English summary

Pumping carwash sand traps and restaurant grease traps, and cleaning related inlets or plumbing, was taxable when performed as needed on nonresidential property.

Documented, scheduled, periodic preventive pumping could qualify as nontaxable maintenance under Rule 3.357(a)(3) and (c)(2). A monthly preventive program could qualify whether the trap was on a septic system or city sewer.

To recover tax already collected and remitted, the provider had to show it first refunded the tax to customers under Rule 3.325.

Common questions

Was as-needed pumping taxable? Yes.

Could monthly preventive pumping be nontaxable? Yes, with proper maintenance documentation.

Did sewer versus septic control? No for the documented preventive-maintenance treatment.

Citations and references

• 34 Tex. Admin. Code Rule 3.357(a)(3) and (c)(2)
• 34 Tex. Admin. Code Rule 3.325

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8910L0965G01

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

October 23, 1989

Dear Sir:

Thank you for your letter concerning the taxability of pumping
sand out of carwashes and pumping grease traps.

The charge to pump the carwash sand trap and the restaurant grease
trap, which are both on Midland City Sewer, is taxable under Rule
3.357 relating to real property repair and remodeling. Rule 3.357
is enclosed for your information. The charge to clean the inlet
and related plumbing is also taxable.

However, if the pumping and/or clean out meets the definition of
maintenance, as defined in Rule 3.357(a)(3) and you have the
documentation required in Section (c)(2) of the rule, the charge
will not be taxable. The documented scheduled maintenance of the
trap is not taxable. But, pumping on an "as needed" basis is
taxable when performed on non-residential property.

Therefore, your charge to pump the restaurant grease trap on a
monthly basis as a preventive maintenance program is not taxable
regardless of whether the grease trap is on a septic system or on
Midland City Sewer provided you have the proper documentation.
The same applies for the carwash. If this is scheduled, periodic,
preventative maintenance, then as long as you have the proper
documentation the charge is not taxable.

To receive a refund of sales tax that you have collected and
remitted to the State, you must show that you have refunded the
tax to your customers. Enclosed is a copy of Rule 3.325 relating
to sales and use tax refunds. Also enclosed are the procedures
for obtaining a refund.

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

If you have any questions, please contact Tax Correspondence. You
may call toll free 1-800-252-5555, or our regular number is
512/463-4600. My extension is 3-4658.

Sincerely,
Sherry Buckley
Tax Correspondence