Sales Tax Articles
Sales Tax State Activity Update - March 2005
Ohio Cleans Up Confusion on Janitorial Services
In an Information Release, the Ohio Department of Taxation updated the taxability of janitorial and building maintenance services as well as the exemptions for property used in rendering the services.
Ohio Revised Code section (R.C.) 5739.01(B)(3)(j) includes within the definition of "sale" and "selling" providing a building maintenance and janitorial service. Building maintenance and janitorial service is defined in R.C. 5739.01(II) as:
"Cleaning the interior or exterior of a building and any tangible personal property located therein or thereon, including any services incidental to such cleaning for which no separate charge is made. However, "building maintenance and janitorial service" does not include the providing of such service by a person who has less than five thousand dollars in sales of such service during the calendar year"
The Department of Taxation prepared a question and answer summary to explain the tax on the sales of building maintenance and janitorial services. Below are the major activities.
Q: What kinds of activities are considered a "building maintenance and janitorial service?
A: In general, this service includes washing, vacuuming, dusting, polishing, and waxing in offices, houses, and other buildings.
Q: Am I entitled to claim exemption on the purchase of equipment, tools, or supplies used in providing a building maintenance and janitorial service?
A: Your purchase of equipment tools and supplies used in providing building maintenance and janitorial service generally are not exempt. However, you are entitled to claim exemption on your purchases in two circumstances.
You may claim the "resale" exemption for those products that are sold outright. You may also claim exemption on the purchase of personal property used to perform the building maintenance or janitorial service if the property will be permanently transferred to the customer of the service as an integral part of the performance of the service.
For further details and to read the full release click here.
Subscribe to CyberTax News and receive the latest indirect tax news, including rate changes, rule updates, compliance issues, and more, delivered directly to your email.
Call 800.355.3500 to Speak to a Sales Representative.
