Does a business have to charge New York sales tax for cleaning the carpeting and upholstery inside a customer's car?

Plain-English summary

Broome Steam Carpet Cleaning Inc. asked whether cleaning automobile carpeting and upholstery is subject to New York sales or use tax.

The Department held the cleaning service itself is not taxable, but related washing-type work is.

• The general rule. Tax Law § 1105(c)(3) taxes maintaining, servicing, and repairing tangible personal property — keeping it in a condition of fitness, efficiency, readiness, or safety. Under 20 NYCRR 527.5, even washing a car is taxable.
• The dry-cleaning exclusion. But § 527.5(b)(3) excludes the services of laundering, dry cleaning, tailoring, weaving, pressing, shoe repairing, and shoe shining. The Department has long applied that exclusion beyond apparel — to cleaning wall-to-wall carpeting, rugs, drapes, and upholstery, whether covered in cloth, vinyl fabric, or leather (citing Rando Enterprises and Delta Sonic Car Wash Systems).
• So the car-interior cleaning is exempt. Charges for cleaning automobile carpets, upholstery, and other interior surfaces covered in fabric or leather by applying cleaning compounds or solvents are not taxable.
• But washing-related work stays taxable. The exclusion does not reach the mere vacuuming of car interiors, or services incidental to washing the car — wiping floor mats, waxing the exterior, cleaning vinyl tops. Those remain taxable.
• The cleaner is a consumer of its supplies. Broome must pay sales tax on its own purchases of the machinery, tools, and supplies it uses or consumes to perform the service (see TSB-M-81(8)S).

What this means for you

Deep-cleaning fabric and leather is treated like dry cleaning — and that's exempt. In New York, applying compounds or solvents to clean carpets, rugs, drapes, and upholstery (including car interiors in cloth, vinyl, or leather) falls under the laundering/dry-cleaning exclusion and is not taxable.

But detailing and car-wash work is taxable. Vacuuming, wiping floor mats, exterior waxing, and cleaning vinyl tops are not dry-cleaning-type services — they're taxable servicing of the vehicle. If you offer packages, watch how the exempt cleaning and the taxable washing/detailing are billed.

You still owe tax on your own supplies. Because your cleaning service is nontaxable, you are the consumer of the machinery, tools, and cleaning products you buy to perform it, and those purchases are taxable to you.

Common questions

Q: Do I charge sales tax to shampoo/clean a car's carpets and upholstery?
A: No. Cleaning fabric or leather interior surfaces with compounds or solvents falls under the dry-cleaning exclusion and is not taxable.

Q: What about vacuuming, floor-mat wiping, waxing, or cleaning the vinyl top?
A: Those are taxable. The exclusion covers dry-cleaning-type cleaning, not vacuuming or work incidental to washing the car.

Q: Do I owe tax on the cleaning products and equipment I buy?
A: Yes. Since your cleaning service is nontaxable, you are the consumer of your machinery, tools, and supplies, so your purchases are taxable.

Citations and references

Statute, regulation, and decisions:

• Tax Law § 1105(c)(3) — taxes maintaining, servicing, and repairing tangible personal property
• 20 NYCRR 527.5 — defines maintaining/servicing/repairing (example: car washing is taxable) and excludes laundering, dry cleaning, tailoring, weaving, pressing, and shoe repair/shining
• Matter of Rando Enterprises, STM 72-20 (Dec. 23, 1971) — applies the exclusion to carpet/upholstery cleaning
• Matter of Delta Sonic Car Wash Systems, TSB-H-87(48)S (Jan. 9, 1987) — same
• TSB-M-81(8)S — Taxable Status of Supplies Used by Auto Body Repair Shops (cleaner's own supplies are taxable)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1987.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a87_42s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-87(42)S
Sales Tax
November 16, 1987

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S870818A

On August 18, 1987, a Petition for Advisory Opinion was received from Broome Steam
Carpet Cleaning Inc., 2401 Vestal Parkway East, Vestal, New York 13850.
The issue raised is whether the service of cleaning automobile carpeting and upholstery is
subject to New York State and local sales or use taxes.
Section 1105(c)(3) of the Tax Law imposes a tax on the services of maintaining, servicing
and repairing tangible personal property not held for sale in the regular course of business.
Sales and Use Tax Regulation Section 527.5 explains further:
(a)(3) Maintaining, servicing and repairing are terms used to cover all
activities that relate to keeping tangible personal property in a condition of
fitness, efficiency, readiness or safety or restoring it to such condition ....
Example 5: The charge for washing an automobile is taxable, whether the
washing is performed manually or by a coin-operated machine.
(b) EXCLUSIONS .... (3) Tax is not imposed on the services of
laundering, dry cleaning, tailoring, weaving, pressing, shoe repairing and
shoe shining.
The Department of Taxation and Finance has followed the policy of applying this exclusion
not only to services performed on apparel but also to the cleaning of wall-to-wall carpeting, rugs,
drapes and of upholstery, whether covered in cloth, vinyl fabric or leather. Matter of Rando
Enterprises, Decision of the State Tax Commission, Dec. 23, 1971, STM 72-20; Matter of Delta
Sonic Car Wash Systems, Decision of the State Tax Commission, Jan. 9, 1987, TSB-H-87(48)S.
Consequently, charges for cleaning automobile carpets, upholstery and other car interior
surfaces covered in fabrics or leather by applying cleaning compounds or solvents, are not taxable.
The exclusion, however, does not apply to the mere vacuuming of car interiors or to other
services incidental to washing automobiles such as wiping floor mats, waxing the exterior and
cleaning vinyl tops.

RODERICK G. W. CHU, COMMISSIONER
TP-8 (3/83)

GABRIEL B. DiCERBO, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR

-2­
TSB-A-87(42)S
Sales Tax
November 16, 1987

Additionally, it should be noted that Petitioner must pay sales tax on its purchases of tangible
personal property (machinery, tools, supplies, etc.) used or consumed in the performance of its
services. Accordingly, Petitioner may find it helpful to review Technical Services Bureau
Memorandum Taxable Status of Supplies Used by Auto Body Repair Shops, May 11, 1981, TSB-M­
81(8)S.

DATED: November 16, 1987

s/ANDREW F. MARCHESE
Chief of Advisory Opinions
Technical Services Bureau

NOTE: The opinions expressed in Advisory Opinions
are limited to the facts set forth therein.