Building Cleaning And Maintenance Fact Sheet - Minnesota Department Of Revenue (Page 2 of 5) in pdf

Not Taxable

(if separately stated on the invoice)

 Cleaning underground tanks

 Septic tank pumping

 Insulation removal

 Services performed by employees for an employer

 Maintenance of outdoor parking lots and outdoor

 Services provided by one business entity for another

open mall areas

when one of the entities owns at least 80% of the other

 Painting and wallpapering

 Sewer and drain cleaning

 Repairs to real property

 Snow plowing and removal

 Washing dishes, dusting knick-knacks, making beds,

 Sandblasting exteriors of buildings

picking up, and room straightening

Note:

Janitorial/housecleaning contracts that include both taxable and nontaxable services are taxed on the full

amount unless the nontaxable services are separately stated.

Additional information

Maintenance contracts for mechanical

To claim the exemption, give your vendor a completed

Form ST3, Certificate of Exemption.

systems

Maintenance contracts for mechanical systems such as

Home health care service contracts

elevators and HVAC systems are taxable building

Contracts that provide a combination of medical care,

cleaning. Some items used to provide these services

personal care, laundry and residential cleaning services

are not taxable. See “Exempt Purchases” on page 4.

(taxable and nontaxable services) to a client for a sin-

gle charge are exempt from sales tax on the entire con-

Repairs to mechanical systems are not taxable. How-

tract price if the services are provided to clients be-

ever, the contractor owes sales or use tax on the parts

cause their illness, disability, or physical condition cre-

used for contracted repairs.

ates a need for the services at their residence.

Lighting maintenance

When a home health care service provides a combina-

Lighting maintenance such as bulb and fuse replace-

tion of medical care, personal care, laundry and clean-

ment is taxable. However, ballast replacement is only

ing services for one charge, the laundry and cleaning

taxable when it is plugged in. When ballasts are hard

services are considered incidental and are not taxable.

wired, maintenance to replace them is not taxable be-

cause it is an improvement to real property.

Note: If a third party provides the residential cleaning

services, the home health care provider cannot pur-

Disinfecting, exterminating, pest control

chase those services exempt for resale.

Disinfecting, exterminating, and pest control services

are taxable. These services include: fumigating, eradi-

Combination construction contracts

cating, or preventing the infestation of termites, bugs,

Contracts to construct, repair, alter, or improve real

roaches, moths, birds, and all other living pests.

property are not subject to sales tax. The contractor

must pay sales or use tax on any materials, supplies,

Agricultural production exemption

equipment, or taxable services used to complete the

Disinfecting and exterminating services are exempt

construction contract. For more information, see Fact

from sales tax when the services are used to:

Sheet 128, Contractors.



prevent or destroy insect infestation of grow-

ing crops, or

A lump sum contract that includes items listed under



to control or eradicate insects, predators, and

“Building cleaning and maintenance” together with

other animal pests for the health and protec-

construction, alteration, or improvements to real prop-

tion of agricultural animals.

erty is considered a construction contract when 50 per-

cent or more of the total cost of the contract is for im-

Disinfectants applied to agricultural animals or their

provement of real property.

environment for the control or eradication of animal

disease or pests are also exempt from sales tax.

Continued

Minnesota Revenue, Building Cleaning and Maintenance

Building Cleaning And Maintenance Fact Sheet - Minnesota Department Of Revenue Page 2

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