Q. Can I buy my soap, wax, and other supplies for resale?
A. No. You are the consumer of all materials and supplies used in providing your washing and waxing services, and must pay sales or use tax on all purchases of such materials and supplies used to provide your service.
Q. Do gross receipts from providing coin-operated motor vehicle washing and waxing services include coin-operated vacuuming?
A. No, provided the vacuuming receipts are accounted for separately.
Q. Our nonprofit organization is conducting a car wash to raise funds for a camping trip. Is this a taxable service?
A. The gross receipts from motor vehicle washing services are taxable. If your nonprofit organization chooses not to set a fee or charge for its car wash and will accept a free-will donation, the free-will donation is not taxable. The organization must post a sign that states "free-will donations accepted." If the organization charges a specific amount for washing, it must have a sales tax permit and collect sales tax on the amount charged for washing the vehicles.
Q. Our Church is conducting a car wash to raise funds for the organization. Is this a taxable service?
A. In addition to the above answer on free-will donations, a religious organization may have one sale a year that is not taxed. The sale may last up to 3 consecutive days. (See Sales and Use Tax Regulation 1-091.07B). A car wash with a set charge could be conducted during the once a year sale without collecting tax.
Q. Our school is conducting a car wash to raise funds for a band trip. Is this a taxable service?
A. If a school or school group conducts a car wash, and the proceeds from the car wash are used to support school activities or the school itself, the service is not taxable even if a specific charge is set for the car wash. (See Sales and Use Tax Regulation 1-092)
Q. Can a motor vehicle dealer purchase detailing services for resale?
A. No. A motor vehicle dealer must pay tax on detailing services purchased for any of its inventory vehicles.