Texas Letter Ruling 9211L1204G11: Is stainless steel polish bought by a janitorial service to clean customers' metal restroom dispensers exempt from tax under a resale certificate?

Plain-English summary

A janitorial company asked the Texas Comptroller whether it could buy stainless steel polish tax-free under a resale certificate, the same way it buys furniture polish tax-free. The company used the stainless steel polish to clean its commercial customers' metal restroom dispensers as part of its janitorial services.

The Comptroller said no. The key distinction is what happens to the product during use. Furniture polish forms a coating that stays on and is absorbed into the wood, so it is effectively "passed on" to the customer and can be purchased tax-free for resale. Stainless steel polish works differently: it acts as a medium that brightens the steel while being consumed through rubbing or buffing, and the desired shine only appears once the polish itself has been removed. Because none of the polish is left behind or transferred to the customer, it does not qualify for resale treatment. The janitorial company therefore had to pay tax when it purchased the stainless steel polish.

What this means for you

Janitorial and cleaning service businesses

If you buy cleaning products that are used up or wiped away during the cleaning process — rather than left on the surface as a coating or residue for the customer — you generally owe tax on that purchase. You cannot treat those supplies as being "resold" to the customer under a resale certificate. This ruling specifically distinguishes stainless steel polish (consumed by buffing) from furniture polish (which leaves a coating that is absorbed and retained).

Business owners and purchasing managers

Whether a supply item can be bought tax-free under a resale certificate depends on whether the product itself is transferred to and retained by the customer, not simply on whether it is used while performing a service for that customer. Products that vanish through use (polishes that are buffed off, cleaning solutions that evaporate or are rinsed away) are typically taxable purchases for the service provider.

Accountants and tax professionals

This letter illustrates the Comptroller's fact-specific "consumed vs. transferred" test for resale-certificate eligibility on supplies used while performing a taxable or nontaxable service. The ruling notes it is based on the facts presented and could change with additional or different facts, so similar products used in a way that leaves residue on the customer's property may be analyzed differently.

Common questions

Q: Can a janitorial company buy stainless steel polish tax-free with a resale certificate?
A: No. The Comptroller ruled that stainless steel polish is taxable at purchase because it is consumed during use (through rubbing and buffing) rather than passed on to the customer.

Q: Why is stainless steel polish treated differently from furniture polish?
A: Furniture polish forms a coating that remains on and is absorbed into the wood, so it is effectively transferred to the customer and can qualify for resale treatment. Stainless steel polish brightens the metal only as it is being rubbed or buffed away, and the shine appears once the polish is gone — so nothing is left behind to "pass on" to the customer.

Q: Does this ruling apply to all cleaning supplies used in janitorial work?
A: The ruling is based on the specific facts presented about stainless steel polish and metal restroom dispensers. The Comptroller noted the opinion could change if the facts were different, so other products should be evaluated on whether they are consumed or actually transferred to the customer.

Q: Who does this letter ruling bind?
A: It is a private letter addressed to a specific taxpayer, redacted before publication. Other taxpayers cannot rely on it directly as authority for their own transactions, though it shows how the Comptroller applies the resale/consumption distinction.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9211L1204G11

Original ruling text

November 18, 1992

Dear ***:

Thank you for your letter regarding the taxability of stainless steel polish
when purchased by you for use in performing janitorial services for commercial
accounts. You state that the stainless steel polish is used on your customers'
metal restroom dispensers.

You note that furniture polish may be purchased tax free under a resale
certificate because it is passed on to your customers and ask if the purchase
of stainless steel polish is exempt for the same reason.

Unlike furniture polish, stainless steel polish is not passed on to your
customers. Whereas furniture polish forms a coating that remains on and is
absorbed into the wood, stainless steel polish acts as a medium which brightens
the steel in the process of being consumed by rubbing or buffing. The desired
effect is only achieved when the polish has been removed. You should,
therefore, pay tax on your purchases of stainless steel polish.

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

If you have any questions, please don't hesitate to write the Tax
Administration Division or call one of our tax specialists toll free at
1-800-252-5555.

Sincerely,

Vic Hinterlang
Tax Administration Division