Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › GROSS RECEIPTS TAX RULES › Rule 006.05.08-004-GR-9.4 - SERVICES SUBJECT TO TAX - CLEANING

Current through Register Vol. 49, No. 6, June, 2024
A. Gross receipts tax applies to the service
				of providing cleaning or janitorial work. Ark. Code Ann. §
									26-52-301(3)(D)(i).
				For purposes of this rule, cleaning services are defined as services to rid the
				interior or exterior of any building, dwelling, or other structure of dirt,
				impurities, or extraneous matter. Generally, the service of cleaning streets,
				sidewalks, driveways, or other areas that are not part of the interior or
				exterior of a building is not taxable. However, see GR-9.7 regarding the
				taxable service of cleaning parking lots and gutters.
B. The service of cleaning motor vehicles,
				aircraft, farm machinery and implements, motors of all kinds, tires and
				batteries, boats, electrical appliances and devices, furniture, rugs, flooring,
				upholstery, household appliances, televisions and radio, jewelry, watches and
				clocks, engineering instruments, medical and surgical instruments, machinery of
				all kinds, bicycles, office machines and equipment, shoes, tin and sheetmetal,
				mechanical tools, and shop equipment is subject to tax. Ark. Code Ann. §
									26-52-301(3)(B)(i).
C. The service of pool cleaning and servicing
				is subject to tax. Ark. Code Ann. §
									26-52-301(3)(D)(i).
D. The cleaning of nonmechanical, passive, or
				manually operated components of buildings or other improvements or structures
				affixed to real estate is not taxable, except when the cleaning is considered
				cleaning or janitorial work.
Example 1: If a painter must clean a wall in preparation to
				  paint, the cleaning of the wall is not taxable. However, if the wall is cleaned
				  but not painted, or if the painter hires a third party to clean the wall prior
				  to painting, the service of cleaning the wall is a taxable cleaning or
				  janitorial service.
Example 2: Cleaning performed by a contractor during
				  construction or upon completion of a construction contract is not taxable if
				  performed by the contractor. However, if the contractor hires a third party to
				  perform the cleaning, the service of cleaning is a taxable cleaning or
				  janitorial service.
E.
				Services that are performed to clean and sanitize the production and packaging
				areas of food processing facilities to meet specific standards prescribed and
				required by the United States Department of Agriculture exceed the scope of
				ordinary cleaning work provided in what is normally considered to be cleaning
				or janitorial services and are not taxable as cleaning or janitorial
				services.
F. Items that are used or
				consumed in performing cleaning or janitorial services may not be purchased tax
				exempt. This includes, but is not limited to, uniforms, machines, equipment,
				cleansers, disinfectants, wax, rags, mops, brooms, and sponges. Such items are
				subject to state and local gross receipts or use tax when purchased for use by
				the service provider. Items such as bathroom tissue, paper towels, and hand
				soap that are transferred to the customer for subsequent use as part of the
				transaction between the service provider and the customer may be purchased
				exempt from tax as a sale-for-resale by the service provider.
Ark. Code Ann. §§
											26-52-301(3)(B);
					 26-52-301(3)(D)