Was regularly scheduled cleaning of kitchen vent hoods and exhaust systems nontaxable preventive maintenance or taxable building cleaning?

Plain-English summary

The company cleaned kitchen exhaust systems so they would meet fire-safety standards and argued that the work was regularly scheduled maintenance under Rule 3.357. The Comptroller acknowledged that the service had elements of both cleaning and maintenance but classified it as taxable building and grounds cleaning under Rule 3.356.

Rule 3.356 covered cleaning that kept premises functional, including minor adjustments, maintenance, or repairs, and specifically used chimney and duct cleaning as examples. Rule 3.357 contemplated activity closer to repair performed on a preventive schedule. The fire-prevention purpose did not change the cleaning classification.

What this means for you

Scheduling a cleaning service for preventive or safety reasons did not automatically make it nontaxable maintenance. Texas focused on what the provider physically did and compared vent-hood work with chimney and duct cleaning.

Common questions

Was the vent-hood service taxable? Yes. Did fire prevention make it nontaxable maintenance? No. How could the taxpayer seek further review? The letter said to pay the tax, request a refund, and explain in the statement of grounds why the work fell under Rule 3.357.

Citations and references

• Rule 3.356 (building and grounds cleaning)
• Rule 3.357 (scheduled maintenance)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9110L1135D04

Original ruling text

October 10, 1991

Dear ***:

You have asked that we tell you whether the services you provide are
exempt as regularly scheduled maintenance under Rule 3.357 or taxable
as janitorial services under Rule 3.356. Your position, as I
understand it, is that you are maintaining exhaust systems so that they
comply with National Fire Protection Association standards. If a vent
hood is not up to standards it may start a fire. (You enclosed
pictures of a vent hood that did burn up.) I have looked over the letters
and pictures you have sent, and I believe that while what your company
does has elements of both regular cleaning under Rule 3.356 and scheduled
maintenance under Rule 3.357 the service is closer to cleaning under 3.356.

Rule 3.356 includes in "building or grounds cleaning" services to keep
the premises functional, including minor adjustments, maintenance, or
repairs. The rule gives as examples chimney and duct cleaning. Not
cleaning a chimney properly can lead to fire, just as not properly
maintaining a vent hood can. Rule 3.357, on the other hand, contemplates
activity more on the level of a repair, but in the regularly scheduled,
preventative sense. That is why cleaning kitchen exhaust systems falls
under building and grounds cleaning.

I hope I have explained our position to your satisfaction. If you
want our legal division and an administrative law judge to review your
case you must pay the tax and ask for a refund. You will be given a
refund hearing, and a lawyer will be assigned to review your "statement
of grounds." In your statement you should be very specific about how you
clean the vent hoods and why you argue that this service falls under Rule
3.357.

If I may be of further assistance please do not hesitate to write or
call me at 1-800-5315441, ext. 3-4677 or 512-463-4677.

Sincerely,

Lucy Glover
Manager, Tax Administration Division