Do I have to charge Texas sales tax for boarding or training dogs at my kennel?

Plain-English summary

The Texas Comptroller told a taxpayer running a kennel and dog training center that boarding dogs and training dogs are both nontaxable services — no sales tax is charged to customers for either one. The kennel owner, however, is treated as the end consumer of anything bought to run the business: sales tax must be paid to vendors on equipment and supplies used to provide the boarding and training services.

The letter also addresses when a sales tax permit is required. A kennel offering only boarding and training does not need one. A permit becomes necessary only if the business also sells dogs or separately charges for dog grooming — both of those are taxable sales/services to the customer.

The Comptroller declined to weigh in on any non-tax licensing requirements to operate as a dog trainer, directing the taxpayer to the county for that question, and noted that the ruling is based on the facts presented and could change if the facts differ.

What this means for you

Kennel and dog-training business owners

You do not collect sales tax from customers on boarding or training charges. You do, however, pay sales tax on your own purchases of equipment and supplies (crates, training equipment, cleaning supplies, and similar items) used to deliver those services, since the law treats you as the final consumer of those items rather than a reseller.

Kennels that also sell dogs or offer grooming

If you sell dogs outright or bill separately for grooming, those specific transactions are taxable to your customers, and you need a Texas sales tax permit to collect and remit that tax — even though your boarding and training charges remain untaxed.

Accountants and tax professionals

This is a short, fact-specific 1993 letter that cites no statutes or rules by number; it applies general sales-tax-on-services principles (services not enumerated as taxable are nontaxable, and a service provider owes tax on its own consumable purchases as the end user). Confirm current STAR guidance before relying on this for a present-day client, since older letters can be superseded by later policy.

Common questions

Q: Do I charge sales tax for boarding a customer's dog?
A: No. The Comptroller ruled that boarding dogs is not subject to Texas sales tax.

Q: Do I charge sales tax for dog training services?
A: No. Dog training is also treated as a nontaxable service.

Q: Do I owe any sales tax at all as a kennel owner?
A: Yes — as the buyer. You must pay sales tax to your own vendors on the equipment and supplies you purchase to run your boarding and training services.

Q: When do I need a sales tax permit?
A: Only if you sell dogs or separately charge for grooming. Both of those are taxable to your customers, so you'd need a permit to collect and remit the tax.

Q: Does this letter cover licensing requirements to operate as a dog trainer?
A: No. The Comptroller specifically said it could not answer that question and suggested contacting the county for any local regulation of dog kennels.

Citations and references

No statutes or administrative rules were cited by number in this letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9301L1217G07

Original ruling text

January 20, 1993

Dear **:

Thank you for your letter concerning a kennel and dog training center in
COUNTY.

The boarding of dogs is not subject to Texas sales tax. The training of dogs is
also a nontaxable service. You must pay sales tax to your vendors on purchases
of equipment and supplies used in providing your boarding and dog training
services.

You do not need a sales tax permit, unless you sell dogs or you separately
state a charge for dog grooming. Such sales or services would be taxable to
your customers.

I cannot answer your question concerning the legal requirements to be a dog
trainer. I would suggest you contact the COUNTY offices for guidance on any
regulation of dog kennels in that county.

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

You may call me toll free at 1-800-531-5441, ext. 5-0030. The direct line is
512/475-0030. You may also write to Tax Administration, Comptroller of Public
Accounts.

Sincerely,

David Somerville
Tax Administration Division