Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-172 - Clearing land, moving earth, cleaning, fumigating, razing or moving existing buildings, and janitorial services

Current through Register Vol. 24-14, July 15, 2024
Persons engaged in performing well drilling, contracts for the
				grading or clearing of land or the moving of earth, and which do not involve
				the building, repairing or improving of any streets, roads, etc. which are
				owned by a municipal corporation or political subdivision of the state or by
				the United States (see WAC
				458-20-171 ); and persons engaged
				in performing contracts which involve the cleaning, fumigating, razing or
				moving of existing buildings or structures and persons performing janitorial
				services are taxable as follows:
Business and Occupation Tax
Taxable under the classification retailing upon gross income
				from contracts to perform such services for consumers, but excluding gross
				income from contracts providing solely for the performance of janitorial
				services the mere core drilling of or testing of soil samples, or the mere
				leveling of land for agricultural purposes.
Taxable under the classification wholesaling -- all others upon
				gross income from subcontracts to perform such services for resale.
Taxable under the classification service and other activities
				upon gross income from contracts to perform janitorial services the mere core
				drilling of or testing of soil samples, or the mere leveling of land for
				agricultural purposes.
The term "janitorial services" includes activities performed
				regularly and normally by commercial janitor service businesses. Generally,
				these activities include the washing of interior and exterior window surfaces,
				floor cleaning and waxing, the cleaning of interior walls and woodwork, the
				cleaning in place of rugs, drapes and upholstery, dusting, disposal of trash,
				and cleaning and sanitizing bathroom fixtures. The term "janitorial services"
				does not include, among others, cleaning the exterior walls of buildings, the
				cleaning of septic tanks, special clean up jobs required by construction,
				fires, floods, etc., painting, papering, repairing, furnace or chimney
				cleaning, snow removal, sandblasting, or the cleaning of plant or industrial
				machinery or fixtures.
Retail Sales Tax
Persons engaged in performing contracts for the grading or
				clearing of land, the moving of earth or the cleaning, fumigating, razing or
				moving of existing buildings or structures must collect the retail sales tax
				upon the full contract price when the work is performed for consumers. The
				retail sales tax is not applicable to charges for janitorial services or the
				mere leveling of land for agricultural purposes.
The retail sales tax applies upon the sales to such contractors
				of equipment and supplies used or consumed in the performance of such contracts
				and which are not resold as a component part of the work.
Use Tax
The use tax applies to the use by such contractors of equipment
				and supplies upon which the retail sales tax has not been
				paid.
Statutory Authority:
				  RCW
				  82.32.300. 83-07-033 (Order ET 83-16), §
				  458-20-172, filed 3/15/83; Order ET 71-1, § 458-20-172, filed 7/22/71;
				  Order ET 70-3, § 458-20-172 (Rule 172), filed 5/29/70, effective
				  7/1/70.