A Pennsylvania-based construction company was in the practice of contracting a cleaning and maintenance service to clean sites while they were being worked on. Even though cleaning services are usually considered a taxable service, the construction company believed the cleaning was an integral part of the construction process and should be considered tax-exempt.

After sending an inquiry to the state DOR, the ruling found that all cleaning services were tax-exempt, except for the final cleaning that took place at the end of a project. Since the cleaning service removed debris and other materials which helped the work site meet safety requirements, it was needed to keep the project going.

However, once the final cleaning took place, it was no longer a part of the construction process. Although it was still needed to obtain a certificate of occupancy for a building or house, those services — dusting, waxing, cleaning, etc. — met the definition of taxable cleaning services.

Cite: Letter Ruling, No. SUT-08-010, June 16, 2008.

Editor’s note: Regs vary widely from state to state. If you have a specific sales and use tax question, consult your state’s DOR for more information.