Q. Is construction site clean-up subject to tax?
A. Yes. Charges for the clean-up of a building under construction are subject to tax. Contractors cannot purchase such services tax-free (for resale) from a third party. This service is not considered contractor labor for sales tax purposes. Nor can such services be purchased tax-free under a Purchasing Agent Appointment, Form 17, issued by the governmental unit or exempt entity.
Q. Are charges to clean a furnace, air conditioner, heat pump, duct work, or drains taxable?
A. Yes. Building cleaning services includes any work done to clean a fixture that has been annexed to real estate. This includes cleaning a furnace, air conditioner, heat pump, duct work, sewer, and drains located in or attached to a building. Such work in not considered contractor labor.
Q. What happens when a contractor responds to a service call to repair a furnace blower and also takes a few minutes to change out the furnace filter?
A. An Option 1 contractor must collect sales tax on the total amount charged for the furnace filter and parts and will not collect any tax on his or her labor charge provided it is separately stated. Option 2 and 3 contractors will pay or remit tax on the furnace filter and repair parts according to their option and will not collect any tax on the amount charged to repair the furnace.
Q. Is the charge to clean equipment located in a building subject to tax?
A. Yes. Charges for the cleaning of any equipment located within a building are taxable.
Q. Is the charge to clean a building after a fire or flood subject to tax?
A. Yes. Charges for cleaning the interior or exterior of a building and its contents after a fire, flood, or similar disaster are subject to tax. Labor charges to repair or replace part or all of the building are not taxable.
Q. Is the charge to winterize an underground sprinkler system subject to tax?
A. No. Charges for services such as the blowout and draining of the underground pipes and sprinkler heads are not taxable.
Q. Can I buy my cleaning supplies tax free?
A. No. You are the consumer of all supplies used in providing your cleaning and maintenance services and must pay sales or use tax on all purchases of materials, supplies and equipment used to provide your service.
Q. Does taxable building cleaning and maintenance include property attached to the outside of a building?
A. Yes. Examples would be an awning, a sign, or an attached deck.
Q. Does building cleaning and maintenance service include picking up containers of grease from a restaurant?
A. No. The charge to pick-up and dispose of or take the containers of grease to a recycling center is not taxable.
Q. Does building cleaning and maintenance service include removing grease from a collection pit located in a building?
A. Yes. The charge for removing the grease from the collection pit is taxable.
Q. If I only charge to inspect a home and its heating and air conditioning systems related to the purchase of a home, am I required to collect sales tax on such charges?
A. No. These inspection charges are normally just to determine if the heating and air conditioning systems are operating properly. However, if the inspector actually cleans, repairs or otherwise performs maintenance on the property, the charges are taxable.