Can Carpet Cleaner Charge Tax In North Carolina

Statistical abstract 2012 part i.

Can carpet cleaner charge tax in north carolina. In other words landlords bear the cost of the routine carpet cleaning when a tenant moves out. Carpet cleaning businesses bill at least 30 cents per square foot and try to gross at least 100 an hour per job. In the state of north carolina services are not generally considered to be taxable. North carolina expanded sales tax to numerous repair maintenance and installation services on march 1 2016 beginning january 1 2017 taxable repair maintenance and installation services are further expanded to include real property and digital property in addition to tangible personal property and a person whose only business activity is providing repair maintenance and installation.

Security deposits are for the benefit and protection of the. Taxes and north carolina gross domestic product statistical abstract 2012 part ii. For example a service whose work includes creating or manufacturing a product it is very likely considered to be taxable and thus you would most likely have to pay sales tax on the service. The following list which is not all inclusive provides examples of installation charges that are subject to the various tax rates imposed in north carolina.

I assume you are a cleaning and janitorial service. 105 164 3 and are sourced in accordance with the sourcing principles set forth in n c. The sales price of or the gross receipts derived from repair maintenance and installation services sold at retail is subject to the general state and applicable local and transit rates of sales and use tax repair maintenance and installation services is defined in n c. If the carpet cleaning does not exceed a professional cleaner s normal rate and the carpet doesn t have any actual damage landlords should not charge a tenant for dirty carpets.

Sometimes a security deposit is called a damage deposit and is generally some amount of money that the landlord is able to hold on to if a rental property needs any cleaning or repairs in order to return the property to the condition it was in when the renter first moved in. Installation charges that are part of the sales price of tangible personal property certain digital property and taxable services sold at retail are generally subject to the general 4. How much profit can a carpet and upholstery cleaning business make. Under california sales tax rules cleaning or janitorial services are exempt from having to charge sales tax even when certain products cleaning products and supplies are used incidentally in connection with the services.

Can you please tell me if we should be charging sales tax on our invoices.