Were final cleanup services required to complete new construction or renovation subject to Florida sales tax?

Subject

Construction Cleaning Services

Plain-English summary

Final construction cleanup required to finish a new or renovated building was not subject to Florida sales tax. The subcontractor removed debris and cleaned interior and exterior surfaces so the general contractor could fulfill the prime contract and obtain the final certificate of occupancy.

The subcontractor performed no repair, alteration, construction, or other improvement work and supplied no building materials. Its narrow cleanup service could fit the general wording for taxable nonresidential cleaning in SIC 7349, but it was specifically listed as “cleaning new buildings after construction” within construction SIC 1799, a category the Legislature had not authorized Florida to tax.

The Department strictly construed the ambiguity against imposing tax and treated the work as nontaxable construction cleaning. It drew a clear line at later maintenance: routine nonresidential janitorial service after the construction job was complete remained taxable.

What this means for you

Timing and contractual purpose matter. Cleanup integrated into completing construction and securing occupancy received different treatment from ongoing building cleaning after turnover.

A contractor performing both types of work must separate them and collect tax on taxable janitorial services. The source did not extend the construction-cleanup treatment to ordinary recurring maintenance.

Common questions

Q: What work was nontaxable? Removing construction debris and cleaning newly constructed or renovated building surfaces as part of completing the prime contract.

Q: Did the subcontractor have to perform construction work too? No. Its scope was limited to cleanup, with no materials, repairs, alterations, or improvements.

Q: Why was the cleanup not treated as taxable building cleaning? It was specifically included in construction SIC 1799, while the tax statute authorized tax for the competing cleaning classification.

Q: Would later janitorial service at the same building be taxable? Yes. The ruling expressly used that as the example of taxable post-construction service.

Citations and references

• Fla. Stat. § 212.05(1)(j) — tax on specified nonresidential cleaning services
• Fla. Admin. Code r. 12A-1.0091(1)(a) — nonresidential cleaning services
• 1987 Standard Industrial Classification No. 7349 — building cleaning and maintenance services
• 1987 Standard Industrial Classification No. 1799 — construction special trades, including cleaning new buildings after construction
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 98A-030

Original ruling text

SUMMARY

This Technical Assistance Advisement answers the question
whether the taxpayer's sales of construction services are
taxable under s. 212.05(1)(j), Florida Statutes and Rule
12A-1.0091(1)(a), F.A.C. The taxpayer is a subcontractor
on contracts involving improvement to realty. The general
contractor engages the taxpayer to perform cleaning
services necessary for the fulfillment of the contractual
obligation to the owner of the property. The taxpayer's
business involves removing debris from the property, and
cleaning the interior and exterior surfaces of the newly
constructed/renovated building. These "clan up" services
are required for the prime contractor to complete the job
and to get the final certificate of occupancy, and are an
integral part of his service. The taxpayer does not
perform any other construction services.

In the TAA we concluded that the cleaning services are
construction cleaning services. While they may be viewed
as being included within the general description of
cleaning services contained in SIC Industry No. 7349, an
industry number for which sales taxes are applied, the
services are clearly included within the services described
under SIC Industry No. 1799, and industry number for which
sales taxes are not authorized. Given that sales tax
statutes are strictly construed against the taxing
authority and given the clear inclusion of the construction
cleaning services within an SIC Industry Number for which
taxes were not authorized by the Legislature, the
construction cleaning services at issue herein are not
subject to tax. However, if the taxpayer performs services
that are both taxable and non-taxable, the taxpayer is
obligated to charge tax on those services subject to tax.
For instance, if the taxpayer cleans a nonresidential
building after construction (non-taxable), and later
performs janitorial services at the same location
(taxable), the taxpayer is required to collect tax on postconstruction nonresidential janitorial services.

Apr 30, 1998

Re: Technical Assistance Advisement No. 98A-030
Sales and Use Tax - Construction Cleaning Services
Section: 212.05(1)(j), F.S.
Rule: 12A-1.0091(1)(a), F.A.C.

Dear :

Your letter of January 10, 1998, requested a Technical
Assistance Advisement on the application of the Sales and Use
Tax to the above referenced matter. This response to your
request constitutes a Technical Assistance Advisement under
Chapter 12-11, Florida Administrative Code, and is issued to you
under the authority of s. 213.22, Florida Statutes.

DISCUSSION OF FACTS

XXX (hereinafter referred to as Taxpayer) is a
subcontractor on contracts involving improvements to realty.
The general contractor engages the taxpayer to perform cleaning
services necessary for the fulfillment of the contractual
obligation to the owner of the property.

The taxpayer's business involves removing debris from the
property, and cleaning the interior and exterior surfaces of the
newly constructed/renovated building. "These `clean up'
services are required for the prime contractor to complete the
job and to get the final certificate of occupancy, and are an
integral part of his service."

The taxpayer does not perform any other construction
services. As a sub-contractor, the taxpayer's scope of work does
not involve repairing, altering, improving, or constructing real
property. The taxpayer does not furnish or use any building
materials for constructing or improving realty. The taxpayer's
scope of work is limited to cleaning services as described
above.

REQUESTED ADVISEMENT
Your question concerns the taxability of providing cleaning
services for new construction as a real property contractor.
You wish to know whether the taxpayer's sales of construction
services are taxable under [s. 212.05(1)(j), Florida Statutes].

DISCUSSION, ANALYSIS, and CONCLUSION OF LAW

Section 212.05(1)(j)(FN 1), F.S. [1997], and Rule 12A1.0091(1)(a), F.A.C., provide that nonresidential cleaning
services are subject to sales tax. This provision in the
Florida Statutes, which became effective on September 1, 1992,
is stated as follows:

(j)1. At the rate of 6 percent on charges for all:
a. ....

b. Nonresidential cleaning... services (SIC Industry Group
Number 734).

2. As used in this paragraph, "SIC" mean those
   classifications contained in the Standard Industrial
   Classification Manual, 1987, as published by the Office of
   Management and Budget, Executive Office of the
   President....

The Standard Industrial Classification (SIC) is the
statistical classification standard underlying all
establishment-based Federal economic statistics classified by
industry. The 1987 edition of the "Standard Industrial
Classification Manual" describes Industry Group No. 734 as
"Services to Dwellings and Other Buildings". More specifically,
establishments providing cleaning services under this industry
group (Industry No.7349) are described as follows:

Establishments primarily engaged in furnishing building
cleaning and maintenance services, not elsewhere
classified, such as window cleaning, janitorial service,
floor waxing, and office cleaning....
Acoustical tile cleaning services
Building cleaning service, interior

Chimney cleaning service
Custodians of schools on a contract or fee basis
Floor waxing service
Housekeeping (cleaning service) on a contract or fee basis
Lighting maintenance service (bulb replacement and cleaning
Maid service on a contract or fee basis
Maintenance, building: except repairs
Office cleaning service
Service station cleaning and degreasing service
Telephone booths, cleaning and maintenance of
Venetian blind cleaning, including work done on owners'
premises
Window cleaning service

Major Group 17, described as "Construction - Special Trade
Contractors," pertains to those establishments engaged in
construction activity. Under this group, Industry No. 1799
describes "Special Trade Contractors, Not Elsewhere Classified"
as follows:

Special trade contractors primarily engaged in construction
work, not elsewhere classified, such as construction of
swimming pools and fences, erection and installation of
ornamental metal work, house moving, shoring work,
waterproofing, dampproofing, fireproofing, sandblasting,
and steam cleaning of building exteriors.

Listed under this general description are certain services
that fall under this group. Included in this list are the
following services:

Cleaning building exteriors - contractors
Cleaning new buildings after construction - contractors
Steam cleaning of building exteriors - contractors

Section 212.05(1)(j)2., F.S., states the intention of the
Legislature to tax services of a type listed in SIC Industry
Group No. 734. Within this SIC Industry Group is SIC Industry
No. 7349. As discussed above, SIC Industry No. 7349 includes
cleaning services; however, no distinction is made between
cleaning services that take place during construction and those

that take place after the construction of the building is
completed and the building is ready for occupancy. In contrast,
cleaning new buildings after construction is specifically listed
under SIC Industry No. 1799 within Industry Group No. 179.

In this case, the cleaning services are construction
cleaning services. While they may be viewed as being included
within the general description of cleaning services contained in
SIC Industry No. 7349, an industry number for which sales taxes
are applied, the services are clearly included within the
services described under SIC Industry No. 1799, an industry
number for which sales taxes are not authorized. Given that
sales tax statutes are strictly construed against the taxing
authority and given the clear inclusion of the construction
cleaning services within an SIC Industry Number for which taxes
were not authorized by the Legislature, the construction
cleaning services at issue herein are not subject to tax.

If the taxpayer performs services that are both taxable and
non-taxable, the taxpayer is obligated to charge tax on those
services subject to tax. For instance, if the taxpayer cleans a
nonresidential building after construction (non-taxable), and
later performs janitorial services at the same location
(taxable), the taxpayer is required to collect tax on postconstruction nonresidential janitorial services.

This response constitutes a Technical Assistance Advisement
under s. 213.22, F.S., which is binding on the Department only
under the facts and circumstances described in the request for
this advice as specified in s. 213.22, F.S. Our response is
based on those facts and the specific situation summarized
above. You are advised that subsequent statutory or
administrative rule changes or judicial interpretations of the
statutes or rules upon which this advice is based may subject
similar future transactions to a different treatment than
expressed in this response.

You are further advised that this response and your request
are public records under Chapter 119, F.S., which are subject to
disclosure to the public under the conditions of s. 213.22, F.S.
Your name, address, and any other details which might lead to

identification of the taxpayer must be deleted by the Department
before disclosure. In an effort to protect the confidentiality
of such information, we request you notify the undersigned in
writing within 15 days of any deletions you wish made to the
request or the response.

Sincerely,

Joseph D. Franklin III
Tax Law Specialist
Technical Assistance and
Dispute Resolutions Section

JDF3/
Ctrl# 32683

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should contact that office at 904-488-0717 (voice), or 1-800DOR-8331 (TDD), at least five working days before such
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FOOTNOTE 1 Formerly s. 212.05(1)(k), F.S.