Building Cleaning And Maintenance Fact Sheet - Minnesota Department Of Revenue (Page 3 of 5) in pdf

Examples



Fire damage requires you to wash walls, clean



Fire damage requires you to wash walls, clean

carpets and Venetian blinds, and paint one of

carpets and Venetian blinds, paint all rooms,

several rooms.

and reconstruct several walls.

Painting walls is not taxable if separately

Since 50 percent or more of the cost of the

stated. Cleaning carpets, Venetian blinds, and

contract is for improving real property, the

washing walls are taxable. However, if the

contract is not taxable.

customer is billed a lump-sum amount for

painting walls and the taxable services, the en-

If the contractor hires a subcontractor to clean,

tire amount is taxable, since more than 50 per-

the contractor must pay tax on the taxable

cent of the contract is for taxable services.

cleaning services. However, if the cleaning is

done by the contractor’s crew, no tax applies.

Junk removal

Junk removal service providers pick up and remove

Note: Nontaxable services must be listed separately on

unwanted items in buildings. Items are generally sent

the customer’s invoice.

to a recycling center, a second use store, or a disposal

station. Junk removal is the first step in cleaning a

Examples

building and is a taxable service.



A bank hires a junk removal service to clean

out a foreclosed residential property. The ser-

Examples include:

vice removes abandoned property from the



Removal of household contents or discarded

home and cleans out household debris. Clean-

items from buildings, including garages, aban-

ing out the contents of buildings is taxable.

doned buildings, and storage units



A construction company removes old carpet to



Cleaning and removal of household waste

install a new wood floor in a home. They re-

move the old carpeting and haul it away. They



Periodic cleaning

also vacuum and sweep before installing the



Maintenance of the building

new wood floor. Hauling away the old carpet-

ing is not taxable since the construction com-

pany is not in the business of junk removal.

Other taxable services that may also be provided are:

Vacuuming and sweeping is also not taxable



Lawn care and maintenance

since it is incidental to the installation.



Removal of twigs and grass clippings



A construction company removes old carpet to

install a new wood floor in a home. They re-



Tree, bush, and stump removal

move the old carpeting and haul it away.



A contractor hires a demolition company to

Nontaxable services include:

tear down two office buildings so an apart-



Waste management services provided by the

ment building can be built on the property.

City Sanitation Department, Solid Waste Man-

The contractor hires a separate company to re-

agement Service Providers, or the Waste Con-

move the demolition debris. The removal of

trol Department (may be subject to Solid

the debris is not taxable. The debris removal is

Waste Management Tax).

not part of building and residential cleaning,

as long as no building remains.



Curbside pickup of items placed by the prop-

erty owner, including yard waste (may be sub-



A homeowner buys a new refrigerator and

ject to Solid Waste Management Tax).

pays the appliance company to deliver and in-

stall it and to remove and haul away the old



Removal of appliances when being replaced, if

refrigerator. The removal of the old refrigera-

removal service is optional

tor is not taxable because the appliance com-



Charges for the removal of dumpsters or

pany is not in the business of junk removal

dumpster bags

and the removal is optional (Removal is taxa-

ble if required).

Continued

Minnesota Revenue, Building Cleaning and Maintenance

Building Cleaning And Maintenance Fact Sheet - Minnesota Department Of Revenue Page 3

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