How were minor pool repairs included with cleaning taxed, and how did separate repair or remodeling charges differ for residential and nonresidential pools?

Plain-English summary

Minor repairs performed as part of a pool-cleaning service were taxable.

Additional repair or remodeling work at a residential pool followed contractor-style billing rules, so treatment depended on whether parts and labor were billed lump-sum or separately. The source did not include the taxpayer's contracts or detailed examples, so the Comptroller kept this answer general.

For a pool not located at a residence, the entire repair or remodeling charge was taxable, whether or not included in a maintenance agreement.

Common questions

Were minor repairs included with cleaning taxable? Yes.

Were all separate residential repairs treated the same? No; lump-sum versus separated billing mattered.

What about a commercial pool? The total repair or remodeling charge was taxable.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9001L0980F09

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller January 24, 1990

Dear ****:

Thank you for your letter dated January 17, 1990, concerning the November
1987 "Swimming Pool Maintenance" Texas Tax Bulletin.

There have been no updates to this bulletin, at this time. My response
to your question will be very general since you did not provide copies of your
clients' contracts or invoices, or give specific examples of the types of
repairs that are in question.

As the bulletin states, minor repairs "done as a part of your cleaning
service" are taxable. Any repair labor not included as routine pool
maintenance work would probably be "significant" and the customer would
probably be charged separately for these repairs.

Therefore, additional charges for repairs or remodeling would be taxable
or not taxable depending on whether the charges to a residential customer for
parts and labor are lump-sum or separately stated. Residential repairmen
follow the same guidelines as contractors.

If the pool is not located at a residence, then the total charge for any
repair or remodeling is taxable, whether included in a pool maintenance
agreement or not.

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 1-800-252-5555 (ext. 3-4685) from anywhere in the
United States or phone 512/463-4685.

Sincerely,
Julie Pesl
Tax Correspondence