|(a) Personal services means all services listed under Group
721, Major Group 72 of the Standard Industrial Classification Manual, 1972.
Personal services listed in Group 721 are laundry, cleaning, and garment services.
(b) Sales tax is due on laundry, cleaning, and garment services.
A person who performs these services is required to collect sales tax from
the customer. Examples of laundry, cleaning, and garment services include,
but are not limited to:
(1) carpet cleaning and repairing, except carpet repairing
performed in residential structures;
(2) diaper cleaning service;
(3) drapery cleaning services;
(4) dry cleaning services for garments or rugs;
(5) fur garment cleaning, repairing, and storage;
(6) garment alterations and repairs;
(7) ironing or pressing garment services;
(8) mending services;
(9) power and hand laundry services;
(10) rug cleaning, dying, and repairing services;
(11) tailoring garments;
(12) treating or applying protective chemicals to carpet, upholstery,
rugs, or drapery;
(13) upholstery cleaning and repairs;
(14) uniform or linen cleaning services that provide only the
services to clean or launder the customers' uniforms or linens; and
(15) valet services.
(c) A person who performs services that are taxable under this
section must pay sales tax on cleaning supplies (chemicals, soaps, etc.),
machinery, tools, utilities, and equipment used to perform laundry, cleaning,
and garment services.
(d) A person who performs services that are taxable under this
section may issue a resale certificate in lieu of paying sales tax on the
purchase of items that are transferred to the customer as an integral part
of the laundry, cleaning, and garment personal services. Examples include
buttons and thread used in mending or tailoring. Examples of items transferred
in residential carpet, drapery, or upholstery cleaning include: carpet protectors,
fire retardants, antistatic applications, flea killers, and rust inhibitors.
See §3.285 of this title (relating to Resale Certificate; Sales for Resale).
Wrapping and packaging supplies do not qualify for the resale exemption, and
sales tax is due on the purchase of wrapping and packaging supplies that are
used to provide taxable services, unless a laundry or dry cleaner purchases
the supplies as provided in subsection (j) of this section.
(e) Sales tax is not due on personal services provided through
coin-operated machines that are operated by the customer.
(f) Sales tax is not due on personal services if performed
by an employee for his employer as part of employee's regular duties for which
he is paid. Sales tax is due on personal services that are performed on a
contractual basis between two or more parties.
(g) Sales tax is not due on repairs to carpet in residential
real property. See §3.291 of this title (relating to Contractors).
(h) Exemption for labor to restore real or tangible personal
property in a disaster area.
(1) Labor to restore, including cleaning, laundering, repairing,
treating, or applying protective chemicals to, real or tangible personal property
is exempt if:
(A) the amount of the charge for labor is separately itemized;
(B) the repair is to property damaged within a disaster area
by the condition that caused the area to be declared a disaster area.
(2) The exemption does not apply to tangible personal property
transferred as part of the repair.
(3) In this subsection, "disaster area" means:
(A) an area declared a disaster area by the governor of Texas
under Government Code, Chapter 418; or
(B) an area declared a disaster area by the president of the
United States under 42 United States Code §5141.
(i) Records must be kept on all personal services performed.
Sales tax is due on the total receipts if adequate records are not maintained.
See §3.281 of this title (relating to Records Required; Information Required).
(j) Sales tax is not due on wrapping, packing, and packaging
supplies that are purchased by a person who performs laundry or dry cleaning
services, if the supplies are used to wrap, pack, or package an item that
the person has pressed and dry cleaned or laundered in the regular course
of business. For the purpose of this section, wrapping, packing and packaging
supplies include hangers, safety pins, pins, inventory tags, staples, boxes,
paper wrappers, and plastic bags. A person who performs laundry or dry cleaning
services may issue an exemption certificate in lieu of paying tax to a supplier
at the time of the person's purchase of the supplies. See §3.287 of this
title (relating to Exemption Certificates). A person who owns coin-operated
or other self-service garment cleaning facilities is not considered to be
a laundry or dry cleaner.
|Source Note: The provisions of this §3.310 adopted to be effective December 10, 1984, 9 TexReg 6017; amended to be effective November 28, 1990, 15 TexReg 6602; amended to be effective January 1, 1992, 16 TexReg 7360; amended to be effective February 10, 1994, 19 TexReg 633; amended to be effective July 19, 2000, 25 TexReg 6776; amended to be effective March 3, 2002, 27 TexReg 1334