Texas Comptroller of Public Accounts STAR System
May 27, 1999
Thank you for your question concerning the power washing of vent hoods for
The taxability of power washing vent hoods for restaurants depends on several
factors. If the vent hoods are improvements to realty (e.g., vent hood is
affixed as part of the duct work of the building), the service to clean the
vent hood is taxable as a real property service. Residential or nonresidential
building or grounds cleaning, janitorial, or custodial services are taxable
services as explained in Rule 3.356(a)(7) on real property services.
Manufacturers may not claim exemption for real property services.
Services to vent hoods that are tangible personal property rather than
improvements to realty may qualify for exemption depending on the
circumstances. If the vent hood is a component part of exempt cooking
equipment (e.g., grill, stove, etc.), then services to clean the vent hood
qualifies for exemption. The exemption for services to manufacturing equipment
that is tangible personal property extends to the component parts and
accessories of the equipment.
If the vent hood is separate from the cooking equipment and is tangible
personal property, the answer depends on whether the service was performed
prior to October 1, 1997 or after. Effective October 1, 1997, the sales tax
law was amended such that machinery and equipment must cause a chemical or
physical change to the product being manufactured. Vent hoods do not cause a
chemical or physical change to the product. Although pollution control
equipment used during the manufacturing process is still exempt, vent hoods
have not been considered pollution control equipment. We have no information
indicating that vent hoods for restaurants are required as pollution control
equipment either by the Environmental Protection Agency (EPA) or the Texas
Natural Resources Commissions (TNRC).
Prior to October 1, 1997, items used in manufacturing to satisfy or comply with
requirements of law or regulations for public health or pollution control
purposes qualified for exemption. Services performed on or after January 1,
1995 and prior to October 1, 1997 on vent hoods that are tangible personal
property are exempt if the restaurant is required by law or regulation to have
the vent hoods. Effective October 1, 1997, the law changed and unless a
manufacturer can prove to the Comptroller's office that the vent hoods qualify
as pollution control equipment, no exemption is applicable under the current
law. [STAR NOTE: Effective 10/01/99, Section 151.318(a)(10) was added to provide
an exemption relating to tangible personal property required to comply with
public health requirements, subject to clear and convincing evidence provided by
the party claiming exemption.]
A manufacturer must give a properly completed exemption certificate to claim
exemption for services to machinery and equipment that qualify for exemption.
The service provider keeps the certificate in his records to document the
claimed exemption by the manufacturer.
This opinion is based on the facts you submitted. Other facts, though similar,
may yield different results.
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 Policy, Comptroller of Public
Tax Policy Division
ACCESSION NUMBER: 9905450L
DOCUMENT TYPE: L
TAX TYPE: SALES