Which carpet, furniture, tile, duct, water-restoration, and carpet-installation services were taxable for a Florida cleaning company?

Plain-English summary

Florida gave service-by-service answers rather than one rule for the cleaning business. Permanently installed carpet was treated as real property, furniture as tangible personal property, and nonresidential tile cleaning as a specifically taxable cleaning service. Whether a protectant remained on the item and whether charges were separately stated also mattered.

The ruling assumed that carpets were fixed with tacks, glue, or another permanent method and served as the finished floor. It also assumed any deodorizer or sanitizer left behind was minimal, unintentional, and short-lived. Except where noted, the answers applied to both residential and nonresidential customers.

Carpet services

• Carpet cleaning: no tax charged to the customer. The cleaner paid tax when buying detergents and supplies.
• Carpet cleaning plus carpet stain protection: neither customer charge was taxable, whether combined or separately stated. The cleaner paid tax on the protectant and other materials.
• Carpet deodorizing or sanitizing: no tax charged to the customer under the residue assumption. The cleaner paid tax on supplies.
• Carpet cleaning combined with furniture services: the carpet portion retained its nontaxable treatment when separately identified as described.

The real-property treatment depended on permanent installation. The ruling did not classify loose rugs or carpet that remained tangible personal property.

Furniture services

• Furniture cleaning alone: nontaxable if records showed that no tangible personal property was furnished and incorporated or attached to the furniture. The cleaner paid tax on overhead materials and supplies.
• Furniture deodorizing or sanitizing: the same recordkeeping rule applied; the customer charge was nontaxable if nothing was furnished and attached.
• Furniture cleaning plus stain protection: both customer charges were taxable, even if separately stated. The protectant was purchased tax-free for resale, while unincorporated supplies remained taxable overhead to the cleaner.

This furniture result also controlled mixed packages that included furniture stain protection: the carpet portions could remain nontaxable, while the furniture cleaning and protectant portions were taxable.

Ceramic tile and grout

• Residential tile-and-grout cleaning: nontaxable under the ruling's real-property-service analysis; the cleaner paid tax on supplies.
• Nonresidential tile-and-grout cleaning: taxable to the customer under section 212.05(1)(i)1.b.
• Residential cleaning plus grout stain protection: followed the nontaxable carpet-cleaning-and-protection response.
• Nonresidential cleaning plus grout stain protection: the cleaning charge was taxable, but the separately treated stain-protection service was not; the cleaner paid tax on the protection materials.

Duct cleaning, water restoration, and carpet installation

• Air-conditioning and heating-system cleaning: treated like the nontaxable carpet-cleaning response.
• Water restoration: no tax charged to the customer; the cleaner paid tax on supplies.
• Sale and permanent installation of wall-to-wall carpet: no tax charged to the customer on either materials or installation, even if separately stated. The installer was a real-property contractor and paid tax when buying the carpet and installation materials.

What this means for you

Carpet cleaners and restoration companies

Determine whether the surface is real property and whether anything durable is transferred to it. Pay tax on supplies when you are treated as the consumer rather than buying them for resale.

Upholstery and furniture cleaners

Maintain records showing that cleaning or deodorizing left no tangible property attached. Adding a furniture stain protectant changed the entire furniture cleaning-and-protection transaction in this ruling.

Commercial cleaning businesses

Do not assume residential and nonresidential treatment is identical. The ruling specifically taxed nonresidential ceramic tile and grout cleaning while leaving the described residential service nontaxable.

Flooring contractors

For permanently affixed wall-to-wall carpet, the contractor paid tax to suppliers and did not separately collect sales tax from the customer on the real-property contract.

Common questions

Q: Was ordinary carpet cleaning taxable?
A: No under the permanent-installation facts. The cleaner paid tax on its supplies.

Q: Was carpet stain protection taxable to the customer?
A: No under the ruling, whether combined with cleaning or separately stated.

Q: Was furniture stain protection treated the same way?
A: No. Furniture cleaning combined with stain protection was taxable to the customer, even with separate charges.

Q: Was commercial tile-and-grout cleaning taxable?
A: Yes. The ruling treated nonresidential tile-and-grout cleaning as taxable.

Q: Was water restoration taxable?
A: No under the described extraction, drying, monitoring, and temporary sanitizing facts.

Q: Did an installer collect tax from the customer on wall-to-wall carpet?
A: No. The installer paid tax on purchased materials as the real-property contractor.

Citations and references

• Fla. Stat. § 212.02 — sales, tangible personal property, and real-property contract definitions
• Fla. Stat. § 212.05(1)(a), (i) — retail sales and nonresidential cleaning services
• Fla. Stat. § 212.06(14)(a); Fla. Admin. Code r. 12A-1.051 — real-property contractors
• Fla. Admin. Code r. 12A-1.006 — services involving tangible personal property
• Fla. Admin. Code r. 12A-1.0091 — cleaning services
• Fla. Stat. §§ 212.054, 212.055; Fla. Admin. Code r. 12A-1.016 — surtax provisions discussed in the advisement
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 04A-014

Original ruling text

SUMMARY

QUESTION: Whether the separately stated charges to
residential and non-residential cleaning customers for
specified services and combinations of services are subject
to sales tax.

ANSWER: - Based on Facts Below The answers provided assume
that all carpets are installed with tacks, glue, or other
permanent means, and are intended to serve as the finished
floor, the following responses were provided. The answers
provided further assume whatever is left behind of the
deodorizer (or sanitizer) is both minimal and
unintentional, and of brief duration. The answers apply to
both residential and non-residential customers unless noted
otherwise.

A. Carpet Cleaning. The charge to the customer for cleaning
services is not subject to tax. The Taxpayer should pay
tax to its suppliers on all purchases of materials and
supplies used to perform this service.

B. Carpet Cleaning and Carpet Stain Protection. The charges
to the customer for cleaning and stain protection services
are not subject to tax, regardless of whether the charges
for the two services are separately stated. The Taxpayer
should pay tax to its suppliers on all purchases of
materials and supplies used to perform these services.

C. Carpet Deodorizing. The charge made to the customer for
deodorizing (or sanitizing) is not subject to tax. The
Taxpayer should pay tax to its suppliers on all purchases
of materials and supplies used to perform this service.

D. Furniture Cleaning. The cleaning service is not taxable
if the Taxpayer maintains records indicating that no
tangible personal property was furnished and incorporated
or attached to the furniture. Materials and supplies
purchased and used by the Taxpayer to perform the service
are taxable to the Taxpayer when purchased as overhead
items.

E. Furniture Cleaning and Stain Protection. The charges
made to the customer for both services are subject to tax,
regardless of whether such charges are separately stated.
Purchase of the protectant is not taxable to the Taxpayer
when purchased. Materials and supplies used in performing
the services but which do not become incorporated or
attached to the furniture are taxable to the Taxpayer when
purchased as overhead items.

F. Furniture Deodorizing. The charge made to the customer
for deodorizing (or sanitizing) is not taxable if the
Taxpayer maintains records indicating that no tangible
personal property was furnished and incorporated or
attached to the furniture. Materials and supplies
purchased and used by the Taxpayer to perform the service
are taxable to the Taxpayer when purchased as overhead
items.

G. Carpet Cleaning and Furniture Cleaning. The charge to
the customer for carpet cleaning services is not subject to
tax. The Taxpayer should pay tax to its suppliers on all
purchases of materials and supplies used to perform the
carpet cleaning service. The furniture cleaning service is
not taxable if the Taxpayer maintains records indicating
that no tangible personal property was furnished and
incorporated or attached to the furniture. Materials and
supplies purchased and used by the Taxpayer to perform the
furniture cleaning service are taxable to the Taxpayer when
purchased as overhead items.

H. Carpet Cleaning, Carpet Stain Protection, and Furniture
Cleaning. The charges to the customer for carpet cleaning
and stain protection services are not subject to tax,
because they are separately stated from the tangible
personal property elements of the contract. The Taxpayer
should pay tax to its suppliers on all purchases of
materials and supplies used to perform the carpet cleaning
and stain protection services. The furniture cleaning
service is not taxable if the Taxpayer maintains records
indicating that no tangible personal property was furnished

and incorporated or attached to the furniture. Materials
and supplies purchased and used by the Taxpayer to perform
the furniture cleaning service are taxable to the Taxpayer
when purchased as overhead items.

I. Carpet Cleaning, Furniture Cleaning, and Furniture Stain
Protection. The charge to the customer for carpet cleaning
services is not subject to tax. The Taxpayer should pay
tax to its suppliers on all purchases of materials and
supplies used to perform the carpet cleaning service. The
charges made to the customer for both furniture cleaning
and furniture stain protection services are subject to tax,
regardless of whether such charges are separately stated.
Purchase of the protectant is not taxable to the Taxpayer
when purchased. Materials and supplies used in performing
the furniture cleaning and furniture stain protection
services but which do not become incorporated or attached
to the furniture are taxable to the Taxpayer when purchased
as overhead items.

J. Carpet Cleaning, Carpet Stain Protection, Furniture
Cleaning and Furniture Stain Protection. The charges to the
customer for carpet cleaning and carpet stain protection
services are not subject to tax, regardless of whether the
charges for the two services are separately stated. The
Taxpayer should pay tax to its suppliers on all purchases
of materials and supplies used to perform the carpet
cleaning and carpet stain protection services. The charges
made to the customer for both furniture cleaning and
furniture stain protection services are subject to tax,
regardless of whether such charges are separately stated.
Purchase of the protectant is not taxable to the Taxpayer
when purchased. Materials and supplies used in performing
the furniture cleaning and furniture stain protection
services but which do not become incorporated or attached
to the furniture are taxable to the Taxpayer when purchased
as overhead items.

K. Ceramic Tile Floor and Grout Cleaning. Residential
customers - see response A., above. Nonresidential
customers - The charge to a customer for ceramic tile floor

and grout cleaning is subject to tax pursuant to Section
212.05(1)(i)1.b., F.S. Purchases of materials and supplies
by the Taxpayer and used in performance of this service is
taxable to the Taxpayer when purchased.

L. Ceramic Tile Floor Cleaning and Grout Stain Protection.
Residential customers - See response B., above.
Nonresidential customers - The charge to a customer for
ceramic tile floor and grout cleaning is subject to tax
pursuant to Section 212.05(1)(i)1.b., F.S. The Taxpayer
should not charge tax to its customer for the stain
protection service. The Taxpayer should pay tax to its
suppliers on all purchases of materials and supplies used
to perform the stain protection service.

M. Air Conditioning and Heating System Cleaning. See
response A., above.

N. Water Restoration Services. The charge to the customer
for water restoration services is not subject to tax. The
Taxpayer should pay tax to its suppliers on all purchases
of materials and supplies used to perform this service.

O. Sale and Installation of Wall-to-Wall Carpeting. The
Taxpayer should not charge the customer tax for the sale
and installation of the carpeting, regardless of whether
charges for material and labor are separately stated. The
Taxpayer should pay tax to its suppliers on all purchases
of materials and supplies used to perform this service.

Mar 02, 2004

Re: Technical Assistance Advisement 04A-014
Sales and Use Tax
Taxability of Various Cleaning Services
Sections 212.02, 212.05, 212.054, 212.055, 212.06, 212.07,
212.08 and 212.21, F.S.
Rules 12A-1.006, 12A-1.0091, 12A-1.016 and 12A-1.051,

F.A.C.
Taxpayer Identification Number: XX

Dear:

This is a response to your letter of September 23, 2003,
requesting a Technical Assistance Advisement (TAA) regarding the
above-referenced matter. The request was made on behalf of the
above taxpayer and taxpayer's franchisees located and operating
in the State of Florida (the taxpayer and its franchisees
collectively will be referred to herein as the "Taxpayer").
This response to your request constitutes a TAA under Chapter
12-11, F.A.C., and is issued to you under the authority of
Section 213.22, F.S.

Facts

The Taxpayer provides a variety of cleaning services to the
public. The Taxpayer's primary line of business, however, is the
provision of carpet cleaning services to residential homeowners.
Your request states that substantially all of the carpets
cleaned by the Taxpayer are installed with tacks, glue, or by
some other permanent means, and serve as the finished floor.
Occasionally, the homeowner will request additional services,
such as carpet stain protection treatment, furniture cleaning,
furniture stain protection treatment, ceramic tile floor
covering and grout cleaning, ceramic tile floor covering grout
stain protection treatment, carpet and furniture deodorizing,
and air conditioning and heating system cleaning. In addition,
the Taxpayer sometimes performs water restoration services to
alleviate the destructive consequences of flooding. Finally, the
Taxpayer occasionally sells and installs wall-to-wall carpeting
to homeowners. The Taxpayer's various services are described as
follows:

Carpet Cleaning. The Taxpayer applies a liquid solution
consisting of a mixture of powdered detergent (phosphate based
or phosphate free) and water to the carpet, and then extracts
the solution from the carpet. The powdered detergent is
specially manufactured for the Taxpayer.

Furniture Cleaning. When cloth upholstered furniture is cleaned,
the Taxpayer uses the same process and liquid solution it uses
to clean carpets. The sole difference is that the liquid
solution is extracted from the furniture with a smaller handheld suction tool. When the Taxpayer cleans leather furniture,
however, it uses an anionic detergent to clean the leather and
keep the leather soft. The leather cleaning process leaves no
film or protectant on the furniture.

Deodorizing. When deodorizing a carpet, the Taxpayer applies a
liquid-based deodorizer to destroy or contain the odor-causing
material. Occasionally, the Taxpayer will use a liquid sanitizer
to help alleviate the odor. Both the liquid deodorizer and the
liquid sanitizer are allowed to dry naturally. The Taxpayer
uses the same materials and procedures for deodorizing cloth
upholstered furniture.

Stain Protection. The Taxpayer generally uses either 3M
ScotchGard or DuPont Teflon Advanced Protectant when applying a
stain protectant to carpet. The protectant is designed to
assist in the removal of dry soil by adhering to the fibers of
the carpet. The protectant also provides some water repellency;
however, it is not a permanent film or coating on the carpet.
Protectant must be reapplied periodically because it gradually
disintegrates due to carpet traffic, carpet vacuuming, and
cleaning. Taxpayer uses the same protectants and procedure for
applying stain protection treatments to cloth upholstered
furniture.

Ceramic Tile Flooring and Grout. When the Taxpayer cleans
ceramic tile floor coverings, it generally pressure washes the
ceramic tile and the accompanying grout between the tiles. When
the grout is exceptionally dirty, the Taxpayer applies a mildly
acidic pre-spray to help assist in the cleaning. The pre-spray
is then pressure washed away. Occasionally, a homeowner will
request that the Taxpayer apply a stain protection treatment to
the grout. The Taxpayer applies either a clear or colored
acrylic based sealant similar in consistency to durable house
paint. The sealant is designed to provide repellency to preclude
liquids and other materials from staining the grout.

Air Conditioning and Heating Systems. The Taxpayer occasionally
cleans air conditioning and heating systems. To clean the
system's ducts, the Taxpayer creates access holes in the main
unit, blocks the return and supply registers, brushes the duct
line, injects air, and then vacuums the dirt and debris in the
ductwork into a filter system. The Taxpayer uses no products
(i.e., detergent or other applications) in the ordinary cleaning
process. Occasionally, however, a duct system is defective due
to porous holes in the duct line. In such cases, the Taxpayer
identifies the location of the porous areas and applies a
sealant type coating; not to protect the duct from stains but to
ensure the integrity of the duct system.

Water Restoration. The Taxpayer first removes any standing water
by vacuuming the water with its carpet cleaning equipment. The
Taxpayer then positions high-powered dehumidifiers and highpowered air movers to operate within the water-soaked area. The
dehumidifiers remove moisture within the soaked carpets,
furniture and walls. The air movers keep the air circulating so
the dehumidifiers can operate more effectively. The entire
process is monitored to ensure that the moisture content in the
walls and carpet is reduced to pre-flood levels. Occasionally,
the Taxpayer will also apply a sanitizing disinfectant in the
form of a quatanary ammonia compound to kill the actively
vegetating yeast, mold and other harmful organisms, and reduce
the likelihood of infestation. The quatanary ammonia compound is
a liquid solution which is sprayed directly on the contaminated
area. It does not kill the microscopic organisms' spores, and it
is not a permanent treatment. Once it is applied and destroys
the active vegetation, it rapidly dissolves.

Carpet Sales and Installation. Sometimes, when a carpet cannot
be cleaned or restored to a customer's satisfaction, the
Taxpayer will furnish and install wall-to-wall carpeting. The
customer selects the carpeting from samples provided by the
Taxpayer. The Taxpayer then brings the carpet to the customer's
premises along with the necessary tack strips, glue guns, and
other installation materials, cuts the carpet to measurement,
and installs the carpet. The carpet is permanently affixed and
serves as the finished floor.

The Taxpayer pays Florida Sales Tax on the carpeting it
purchases. The Taxpayer also pays Florida Sales Tax on all
cleaning supplies, protectants, sealants, and deodorizers used
in providing its services.

The Taxpayer generally knows which services have been requested
prior to entering the customer's premises. It is rare for a
customer to ask for stain protection treatment without having
the Taxpayer clean the carpet or furniture first. Similarly, it
is rare for a customer to request that ceramic tile floor grout
be sealed without having the Taxpayer clean the ceramic tile
floor covering and accompanying grout first. Customers are
billed a line item charge for each service the Taxpayer
provides.

Carpet cleaning and repairing, furniture cleaning, and
upholstery cleaning services are classified within SIC code
number 7217. "SIC" refers to the classifications contained in
the Standard Industrial Classification Manual, 1987, published
by the Office of Management and Budget, Executive Office of the
President (the Manual). Building cleaning and maintenance
services, such as window cleaning, janitorial service, floor
waxing, and office cleaning are classified within SIC code
number 7349. Building cleaning and maintenance services are
contained within SIC Industry Group Number 734, Services to
Dwellings and Other Buildings, together with Disinfecting and
Pest Control Services, SIC code number 7342.

Although your request focused primarily on services provided to
residential customers, you have subsequently requested that the
Department's response separately address services provided to
commercial customers. Except where expressly stated to the
contrary, it shall be assumed that all carpets subject to the
Taxpayers services are installed with tacks, glue, or other
permanent means, and are intended to serve as the finished
floor.

Requested Advisement

Based on the facts provided, Taxpayer has requested the
following rulings:

A. Florida Sales Tax is not due when the Taxpayer provides
carpet cleaning services, and no other services, to customers;

B. Florida Sales Tax is not due when the Taxpayer provides
carpet cleaning and carpet stain protection services, and no
other services, to customers;

C. Florida Sales Tax is not due when the Taxpayer provides
carpet deodorizing services, and no other services, to
customers;

D. Florida Sales Tax is not due when the Taxpayer provides
furniture cleaning services, and no other services, to
customers;

E. Florida Sales Tax may be due when the Taxpayer provides
furniture cleaning and furniture stain protection services, and
no other services, to customers, but only on the amount of the
furniture stain protection services;

F. Florida Sales Tax is due when the Taxpayer provides furniture
deodorizing services, and no other services, to customers;

G. Florida Sales Tax is not due when the Taxpayer provides
carpet cleaning and furniture cleaning services, and no other
services, to customers;

H. Florida Sales Tax is not due when the Taxpayer provides
carpet cleaning, carpet stain protection, and furniture cleaning
services, and no other services, to customers;

I. Florida Sales Tax may or may not be due when the Taxpayer
provides carpet cleaning, furniture cleaning, and furniture
stain protection services to customers, and no other services,
because the transaction should be taxed as a "mixed contract;"

J. Florida Sales Tax may or may not be due when the Taxpayer
provides carpet cleaning, carpet stain protection, furniture
cleaning and furniture stain protection services to customers,
and no other services, because the transaction should be taxed

as a "mixed contract;"

K. Florida Sales Tax is not due when the Taxpayer provides
ceramic tile floor and grout cleaning services, and no other
services, to customers;

L. Florida Sales Tax is not due when the Taxpayer provides
ceramic tile floor cleaning and grout stain protection services,
and no other services, to customers;

M. Florida Sales Tax is not due when the Taxpayer provides air
conditioning and heating system cleaning services, and no other
services, to customers;

N. Florida Sales Tax is not due when the Taxpayer provides water
restoration services, and no other services, to customers; and,

O. Florida Sales Tax is not due when the Taxpayer sells and
installs wall-to-wall carpeting, and no other services, to
customers.

Applicable Law

Section 212.05, F.S., provides in pertinent part:

It is hereby declared to be the legislative intent that
every person is exercising a taxable privilege who engages
in the business of selling tangible personal property at
retail in this state....

(1) For the exercise of such privilege, a tax is levied on
each taxable transaction or incident, which tax is due and
payable as follows:

(a)1.a. At the rate of 6 percent of the sales price of each
item or article of tangible personal property when sold at
retail in this state, computed on each taxable sale for the
purpose of remitting the amount of tax due the state, and
including each and every retail sale.

(b) At the rate of 6 percent of the cost price of each item

or article of tangible personal property when the same is
not sold but is used, consumed, distributed, or stored for
use or consumption in this state;...

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

b. Nonresidential cleaning and nonresidential pest control
services (SIC Industry Group Number 734).

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

Section 212.02, F.S., provides in pertinent part:

(4) "Cost price" means the actual cost of articles of
tangible personal property without any deductions therefrom
on account of the cost of materials used, labor or service
costs, transportation charges, or any expenses whatsoever.

(10)(h) "Real property" means the surface land,
improvements thereto, and fixtures, and is synonymous with
"realty" and "real estate."

(14)(a) "Retail sale" or a "sale at retail" means a sale to
a consumer or to any person for any purpose other than for
resale in the form of tangible personal property or
services taxable under this chapter, and includes all such
transactions that may be made in lieu of retail sales or
sales at retail....

(15) "Sale" means and includes:

(a) Any transfer of title or possession, or both, exchange,
barter, license, lease, or rental, conditional or
otherwise, in any manner or by any means whatsoever, of
tangible personal property for a consideration.

(16) "Sales price" means the total amount paid for tangible
personal property, including any services that are a part
of the sale, valued in money, whether paid in money or
otherwise, and includes any amount for which credit is
given to the purchaser by the seller, without any deduction
therefrom on account of the cost of the property sold, the
cost of materials used, labor or service cost, interest
charged, losses, or any other expense whatsoever. "Sales
price" also includes the consideration for a transaction
which requires both labor and material to alter, remodel,
maintain, adjust, or repair tangible personal property....

(19) "Tangible personal property" means... personal property
which may be seen, weighed, measured, or touched or is in any
manner perceptible to the senses.... (emphasis supplied)

Section 212.06, F.S., provides in pertinent part:

(1)(a) The aforesaid tax at the rate of 6 percent of the
retail sales price as of the moment of sale, 6 percent of
the cost price as of the moment of purchase, or 6 percent
of the cost price as of the moment of commingling with the
general mass of property in this state, as the case may be,
shall be collectible from all dealers as herein defined on
the sale at retail, the use, the consumption, the
distribution, and the storage for use or consumption in
this state of tangible personal property or services
taxable under this chapter....

(14) For the purpose of determining whether a person is
improving real property, the term:

(a) "Real property" means the land and improvements thereto
and fixtures and is synonymous with the terms "realty" and
"real estate."

(b) "Fixtures" means items that are an accessory to a
building, other structure, or land and that do not lose
their identity as accessories when installed but that do
become permanently attached to realty....

(c) "Improvements to real property" includes the activities
of building, erecting, constructing, altering, improving,
repairing, or maintaining real property. (emphasis
supplied)

Section 212.07(1)(a), F.S., provides:

The privilege tax herein levied measured by retail sales
shall be collected by the dealers from the purchaser or
consumer. (emphasis supplied)

Section 212.055, F.S., authorizes the imposition of
discretionary surtaxes by local governments. The tax levied
pursuant to Section 212.055, F.S., applies to all transactions
occurring in the local jurisdiction that are subject to the
state tax imposed on sales, use, services, rentals, admissions,
and other transactions by chapter 212, F.S. Section
212.054(2)(a), F.S. However, this surtax may only be applied to
the first $5,000 of the transaction for an item of tangible
personal property. Section 212.054(1)(b), F.S. A transaction
is deemed to have occurred in a county imposing the surtax when
the sale includes an item of tangible personal property, a
service, or tangible personal property representing a service,
and delivery takes place within the county. Section
212.054(3)(a)1., F.S.

Rule 12A-1.006, F.A.C., addresses charges made by dealers who
adjust, apply, alter, install, maintain, remodel, or repair
tangible personal property and provides in pertinent part:

(1)(a) Where parts are furnished by the repairer, the
entire charge the repairer makes to a customer for
adjusting, applying, installing, maintaining, remodeling,
or repairing tangible personal property is taxable, except
as otherwise provided in paragraph (b) of this subsection.

(c) Materials which are actually incorporated into and
become a part of the tangible personal property repaired,
remodeled, or maintained, such as welding rods, solder,

body solder, or other surfacing materials, paint, thinner,
bolts, nuts, etc., are not taxable when purchased by the
repairer. Materials and supplies used by the repairer in
making such repairs, etc., but which do not become a part
of the property repaired are taxable to the repairer as
overhead items. For example: Tools, sandpaper, steel wool,
flux, detergents, and the like are not incorporated into
the repair or remodeling job and are taxable.

(3) The provisions of this rule do not apply to contracts
covering a combination of work on both real and personal
property. Such contracts are governed by the provisions of
Rule 12A-1.051, F.A.C.

(4) Except as otherwise provided in paragraph (b) of
subsection (1), charges for repairs of tangible personal
property which require labor or service only are taxable
unless the repairer (dealer) can establish by evidence in
the dealer's records that the dealer furnished no tangible
personal property which was incorporated into or attached
to the repaired item. It is immaterial that the cost of the
material furnished is insignificant when compared to the
cost of the labor involved. For maintenance contracts
covering tangible personal property, refer to Rule 12A1.105, F.A.C.

(7) ... (b) The charge for refinishing, restoring, or
upholstering furniture is taxable.

(16)(a) The charge for a plain wash job, in which only
detergent or water softener is added to the water, is
exempt. The purchase of detergents or water softeners for
use in the performance of the wash job is taxable to the
dealer.

(b) The entire charge for a wash job, in which wax,
silicones, or any other substance is added that forms a
protective film or coating, is taxable. The purchase of
materials such as wax, silicones, and the like, which form
a protective film or coating, is exempt to the dealer. The
dealer shall extend a resale certificate to his supplier in

lieu of paying tax.

(c) The purchase of machinery and equipment, parts and
accessories, soaps, brushes, or other supplies for
operation of a car wash facility is taxable to the dealer.

(d) Dealers who operate car wash facilities which provide
both taxable and exempt wash jobs must maintain
documentation to distinguish the taxable status of each
transaction. In all instances where a dealer is unable to
differentiate and document the taxable status of each
transaction, it is presumed that all wash jobs performed at
such facility are taxable. (emphasis supplied)

Rule 12A-1.0091, F.A.C., provides in pertinent part:

(1)(a) Nonresidential cleaning services are subject to tax.
Nonresidential cleaning services are those services (not
involving repair) rendered to maintain the clean and
sanitary appearance and operating condition of a
nonresidential building, but they do not include cleaning
services provided for tangible personal property. Examples
of such nonresidential cleaning services subject to tax
are:

1. Acoustical tile cleaning services;
2. Building cleaning services, interior;
3. Chimney cleaning services;
4. Custodians of schools on a contract or fee basis;
5. Deodorant servicing of restrooms;
6. Disinfecting services;
7. Floor waxing services;
8. Housekeeping (cleaning services) on a contract or fee
   basis;
9. Janitorial services on a contract or fee basis;
10. Lighting maintenance services (bulb replacement and
    cleaning);
11. Maid services on a contract or fee basis;
12. Maintenance of buildings (except repairs);
13. Office cleaning services;

14. Restroom cleaning services;

15. Service station cleaning and degreasing services;
16. Venetian blind cleaning;
17. Washroom sanitation service; and
18. Window cleaning (interior or exterior).

(b) Residential cleaning services are not taxable....

(5) Cleaning service providers are considered the ultimate
users or consumers of the tangible personal property sold
to them and used in connection with their service and are
required to pay the tax imposed upon such sales of tangible
personal property to their dealers.

Rule 12A-1.016(3), F.A.C., addresses sales and installation
charges and provides in pertinent part:

(3)(a) The total consideration received for labor or
services used in installing tangible personal property
which is sold and does not become a part of realty, is
taxable even though such charge may be separately stated.

(b) Contractors and manufacturers who furnish and install
the following items are considered to be retail dealers and
are required to charge sales tax on the full price,
including installation and any other charges:

1. Carpets, except those that become real property (See
   Rule 12A-1.051, F.A.C.); (emphasis supplied)

Rule 12A-1.051, F.A.C., addresses sales made to or by
contractors who repair, alter, improve and construct real
property, and provides in pertinent part:

(1) Scope of the rule. This rule governs the taxability of
the purchase, sale, or use of tangible personal property by
contractors and subcontractors who purchase, acquire, or
manufacture materials and supplies for use in the
performance of real property contracts other than public
works contracts....

(2) Definitions. For purposes of this rule, the following
terms have the following meanings:

(c)1. "Fixture" means an item that is an accessory to a
building, other structure, or to land, that retains its
separate identity upon installation, but that is
permanently attached to the realty....

3. The determination whether an item is a fixture depends
   upon review of all the facts and circumstances of each
   situation. Among the relevant factors that determine
   whether a particular item is a fixture are the following:

a. The method of attachment....

b. Intent of the property holder in having the item
attached....
c. Real property law....

d. Customization....

f. ... The foregoing list of factors relevant to
determining whether an item is a fixture is intended to be
illustrative only. Additional factors may exist in any
particular case, and the weight to be given to the factors
will also vary in each case.

(d) "Improvement to real property" or "real property
improvement" includes the activities of building, erecting,
constructing, altering, improving, repairing, or
maintaining real property.

(h)1. "Real property contract" means an agreement, oral or
written, whether on a lump sum, time and materials, cost
plus, guaranteed price, or any other basis, to:

a. Erect, construct, alter, repair, or maintain any
building, other structure, road, project, development, or
other real property improvement;

c. Furnish and install tangible personal property that

becomes a part of or is directly wired or plumbed into the
central heating system, central air conditioning system,
electrical system, plumbing system, or other structural
system that requires installation of wires, ducts,
conduits, pipes, vents, or similar components that are
embedded in or securely affixed to the land or a structure
thereon.

2. The term "real property contract" does not include:

b. A contract to furnish tangible personal property that
will be installed or affixed in such a way as to become a
fixture or improvement to real property if the person
furnishing the property has not also contracted to affix or
install it.

3. A contract is a real property contract if described in
   subparagraph 1. above, whether or not such agreement also
   involves providing property or services that would not be
   considered improvements to real property. See subsection
   (8) of this rule for discussion of such contracts.

(4) General rule of taxability of real property
contractors. Contractors are the ultimate consumers of
materials and supplies they use to perform real property
contracts and must pay tax on their costs of those
materials and supplies, unless the contractor has entered a
retail sale plus installation contract. Contractors
performing only contracts described in paragraphs (3)(a),
(b), (c), or (e) do not resell the tangible personal
property used to the real property owner but instead use
the property themselves to provide the completed real
property improvement. Such contractors should pay tax to
their suppliers on all purchases. They should also pay tax
on all materials they fabricate for their own use in
performing such contracts, as discussed in subsection (10).
They should charge no tax to their customers, regardless of
whether they itemize charges for materials and labor in
their proposals or invoices, because they are not engaged
in selling tangible personal property. Such contractors
should not register as dealers unless they are required to

remit tax on the fabricated cost of items they fabricate to
use in performing contracts.

(6) Sales of tangible personal property. Contractors,
manufacturers, or dealers who sell and install items of
tangible personal property, including those enumerated in
Rule 12A-1.016, F.A.C., must collect tax on the full
selling price, including any installation or other charges,
even though such charges may be separately stated. The
items listed in Rule 12A-1.016, F.A.C., are tangible
personal property even after installation, and their sale
with installation is not classified as a real property
contract. Contractors, manufacturers, or dealers who sell
property over-the-counter without performing installation
services must collect tax on the full sales price of such
items, even though those items will become improvements to
real property upon installation by the purchaser. At the
point at which they are sold in over-the-counter
transactions, those items are tangible personal property.

(8) Mixed contracts. A real property contract may also
include materials and labor that are not real property
improvements. A contract that includes both real property
work and tangible personal property is referred to in this
subsection as a mixed contract. A mixed contract is not the
same as a contract described in paragraph (3)(d) of this
rule. Paragraph (3)(d) deals with a real property contract
in which the contractor separately itemizes and prices all
the materials that will be incorporated as part of the real
property. A mixed contract is one that involves a real
property improvement, maintenance, or repair and also
involves providing tangible personal property that remains
tangible personal property and does not become part of the
real property. In the case of a mixed contract, taxability
depends upon the predominant nature of the work performed
under the contract and upon the contract terms.

(a) If the predominant nature of a mixed contract is a
contract for real property improvements, taxability will be
determined as if the contract were entirely for real
property....

(b) If the predominant nature of a mixed contract is a
contract for tangible personal property, taxability of the
contract will be determined as if the contract were
entirely for tangible personal property....

(c) The determination of the predominant nature of a
contract will depend upon the facts and circumstances of
each case. Consideration will be given to the description
of the project and the responsibilities of the contractor
as set forth in the contract. Consideration will also be
given to the relative cost of performance of the real
property and tangible personal property components of the
contract.

(d) If a mixed contract clearly allocates the contract
price among the various elements of the contract, and such
allocation is bona fide and reasonable in terms of the
costs of materials and nature of the work to be performed,
taxation will be in accordance with the allocation....

(17) Specific activities classified as real property
contracts. Contractors who are engaged in the following
activities are generally considered to be real property
contractors, although any particular job may be determined
not to involve an improvement to real property:

(g) Carpeting installed with tacks, glue, or other
permanent means and serving as the finished floor;

(p) Flooring;

(s) Heating, ventilating, and air conditioning system work;

(ee) Sheet metal/ductwork;

(nn) Tile work;

The determination whether any particular job involves a
contract for an improvement to real property will be based

on the criteria set forth in paragraphs (c), (d), (e), (g),
(h), (i), and (j) of subsection (2).

(18) Specific activities not classified as real property
contracts. The sale, installation, maintenance, or repair
of the following items is not considered to be a real
property contract.

(a) Area rugs and carpets;

(g) Furniture; (emphasis supplied)

The word "maintain" is defined in part as "to keep in an
existing state; preserve or retain," as well as "to keep in a
condition of good repair or efficiency." American Heritage
Dictionary (4th ed. 2000).

Analysis and Discussion

RESIDENTIAL SERVICES

I. Nonresidential Cleaning Services, Section 212.05(1)(i)1.b.,
F.S.

As correctly noted in your request for advisement, Section
212.05(1)(i)1.b., F.S., does not apply to the services provided
by the Taxpayer to residential customers. Section
212.05(1)(i)1.b., F.S., which became effective September 1,
1992, provides that charges for "[n]onresidential cleaning...
services (SIC Industry Group Number 734)" are taxable. "SIC"
refers to the classifications contained in the Manual. Section
212.05(1)(i)2., F.S. Thus, the express terms of the statute
indicate that cleaning services provided to residential
customers are not subject to tax under Section 212.05(1)(i)1.b.,
F.S. See also Rule 12A-1.0091(1)(b), F.A.C. (expressly
providing that residential cleaning services are not taxable).

II. Sale of Tangible Personal Property, Section
212.05(1)(a)1.a., F.S.

The Taxpayer's services when provided to residential customers
are taxable under Chapter 212, F.S., if they involve a taxable
sale of tangible personal property. Section 212.05, F.S.,
indicates that a person(FOOTNOTE #1) engaging in the business of
selling tangible personal property at retail in Florida is
exercising a taxable privilege. For the exercise of that
privilege, a tax is imposed upon each taxable retail sale of
tangible personal property at the rate of six percent (6%) of
the sales price of each item, plus any applicable local
discretionary surtax. Section 212.05(1)(a), F.S.; Section
212.054(2)(a), F.S. The statement of legislative intent
contained in Section 212.21(2), F.S., indicates that "every
sale, admission, use, storage, consumption, or rental" is
intended to be taxed unless specifically exempted by Chapter
212, F.S.

For the purposes of Chapter 212, F.S., a "sale" includes "[a]ny
transfer of title or possession, or both,... in any manner or
by any means whatsoever, of tangible personal property for a
consideration." Section 212.02(15)(a), F.S. However, not every
"sale" is subject to tax. It is, rather, the charge made for a
"retail sale" that is subject to tax pursuant to Section
212.05(1)(a)1.a., F.S. A "retail sale" is a sale of tangible
personal property or services taxable under Chapter 212, F.S.,
"to a consumer or to any person for any purpose other than for
resale." Section 212.02(14)(a), F.S. "Tangible personal
property" is "personal property which may be seen, weighed,
measured, or touched or is in any manner perceptible to the
senses." Section 212.02(19), F.S. The taxable "sales price" is
the "total amount paid" for an item, and includes "services that
are part of the sale" Section 212.02(16), F.S. "Sales price"
also includes "the consideration for a transaction which
requires both labor and material to alter, remodel, maintain,
adjust, or repair tangible personal property." Id. Thus, the
entire charge for a transaction requiring both labor and
materials to "alter, remodel, maintain, adjust, or repair
tangible personal property" is subject to tax. The definitions
contained in Section 212.02, F.S., thus define what constitutes
a "sale" broadly, and indicate that a number of personal service
transactions, when tangible personal property is also
transferred, are included within the scope of Chapter 212, F.S.

Generally, professional or personal services are not taxable
under Chapter 212, F.S., except as expressly provided therein.
Professional or personal service transactions that involve sales
as "inconsequential elements," and for which no separate charges
are made, are specifically exempt from the tax imposed by
Chapter 212, F.S. Section 212.08(7)(v)1., F.S. Even if no
separate charge was made, the "sales" of tangible personal
property at issue do not constitute "inconsequential elements"
of the transactions.

The tax levied pursuant to Chapter 212, F.S., is imposed at the
level of the purchaser or ultimate consumer/user of tangible
personal property. See Sections 212.02(14)(a) and 212.07(1)(a),
F.S.; see also Section 212.06, F.S. Real property contractors
are generally considered to be the ultimate consumers or users
of the tangible personal property they purchase to perform a
real property contract. See Rule 12A-1.051(4), F.A.C.; Kings
Bay Yacht and Country Club, Inc. v. Green, 173 So. 2d 509 (Fla.
1st DCA 1965). Thus, a distinction is made between contracts
relating to real property and contracts relating to tangible
personal property.

Rule 12A-1.006, F.A.C., contains the Department's interpretation
of the provisions of Chapter 212, F.S., with regard to charges
made by dealers who "Adjust, Apply, Alter, Install, Maintain,
Remodel, or Repair Tangible Personal Property." Rule 12A-1.051,
F.A.C., contains the Department's interpretation of the
provisions of Chapter 212, F.S., with regard to "Sales to or by
Contractors Who Repair, Alter, Improve and Construct Real
Property."

A. Contracts Solely For the Repair, Maintenance, Etc. of
Real Property

Rule 12A-1.051, F.A.C., governs the taxability of the purchase,
sale, or use of tangible personal property by contractors and
subcontractors who purchase, acquire, or manufacture materials
for use in performance of real property contracts (other than
public works contracts). Rule 12A-1.051(1), F.A.C. Rule 12A1.051, F.A.C., applies to sales to or by contractors who repair,

alter, improve and construct real property. The stated general
rule for real property contractors is that they should not
charge tax to their customers, regardless of whether or not they
itemize charges for materials or labor, because they are not
engaged in the activity of selling tangible personal property.
Rule 12A-1.051(4), F.A.C. (FOOTNOTE #2) Real property
contractors are considered the ultimate consumers of the
materials and supplies they use to perform real property
contracts and must pay tax on the costs of those materials and
supplies. Id. A real property contract that includes property
or services that are not considered improvements to real
property (mixed contracts) are governed by Rule 12A-1.051(8),
F.A.C., and will be discussed in a separate section.

Contractors engaged in the activity of installing carpeting with
tacks, glue, or by another permanent means to serve as the
finished floor are generally considered to be real property
contractors. Rule 12A-1.051(17)(g), F.A.C. Contractors engaged
in flooring or tile work are also generally considered to be
real property contractors. Rule 12A-1.051(17)(p) and (nn),
F.A.C. Contractors engaged in heating, ventilating, and air
conditioning work and sheet metal/ductwork are similarly
considered to be real property contractors. Rule 12A1.051(17)(s) and (ee), F.A.C. The sale and installation by the
same person of carpeting attached with tacks, glue, or other
permanent means and serving as the finished floor is considered
a real property contract. See Rules 12A-1.051(2)(h)2.b.,
(17)(g), and (18)(a), F.A.C. The sale, installation,
maintenance, or repair of area rugs and carpets or furniture is
not considered the performance of a real property contract.
Rule 12A-1.051(18)(a) and (g), F.A.C.

"Real property" is defined for the purposes of Chapter 212,
F.S., as land, improvements to land, and fixtures. Sections
212.02(10)(h) and 212.06(14)(a), F.S.; Rule 12A-1.051(2)(g),
F.A.C. A "fixture" is an accessory to a building, structure, or
land that retains its separate identity upon installation, but
is permanently attached to the realty. Section 212.06(14)(b),
F.S.; Rule 12A-1.051(2)(c)1., F.A.C. You submit in your request
that carpeting installed with tacks, glue or other permanent
means and serving as the finished floor, and ceramic tile

flooring should be classified as "fixtures" and therefore
constitute "real property." We agree. Central air conditioning
and heating systems, including the accompanying duct systems,
are also fixtures and thus "real property" pursuant to Section
212.02(10)(h), F.S., and Rule 12A-1.051(2)(g), F.A.C.

A "real property contract" is an agreement to "[e]rect,
construct, alter, repair, or maintain any building, structure,
road, project, development, or other real property improvement."
Rule 12A-1.051(2)(h)1.a., F.A.C. "Real property improvement" is
defined to include "the activities of building, erecting,
constructing, altering, improving, repairing, or maintaining
real property." Section 212.06(14)(c), F.S.; Rule 12A1.051(2)(d), F.A.C. As you pointed out in your request, the
terms "alter," "improve," "repair," and "maintain", as used in
Rule 12A-1.051(2)(d) and (h)1.a., F.A.C. are not defined in
Chapter 212, F.S., or in Rule 12A-1.051, F.A.C. As you
correctly note, absent a statutory definition, words are given
their plain and ordinary meaning as found in the dictionary.
See Suddath Van Lines, Inc. v. Department of Environmental
Protection, 668 So. 2d 209, 212 (Fla. 1st DCA 1996).

You submit in your request that carpet cleaning (with and
without stain protection or deodorizer treatment), ceramic tile
floor and grout cleaning (with and without grout stain
protection treatment), water restoration, and air conditioning
and heating systems cleaning (with and without application of
sealant to duct line holes) services have the effect of
"altering," "improving," "repairing," or "maintaining" the
carpet, ceramic tile floor and grout, and air conditioning and
heating systems. The Department does not consur that these
services "alter," "improve," or "repair" the property. However,
the Department does concur that these services "maintain" the
carpet, ceramic tile floor and grout, and air conditioning and
heating systems.

The American Heritage Dictionary (4th ed.) Defines the term
"maintain" in part as "to keep in an existing state; preserve or
retain," as well as "to keep in a condition of good repair or
efficiency."

You submit that cleaning the carpet "maintains" the carpet
because it helps preserve its appearance and keeps the carpet in
a condition of good repair. Similarly, you submit that applying
stain protectant to a carpet "maintains" the carpet because it
has the effect of helping to preserve it in a stain-free state
as well as keeping it in good repair. For analogous reasons,
you also submit that ceramic tile floor and group cleaning,
grout stain protection, air conditioning and heating system
cleaning (with or without application of sealant to duct line
holes), and water restoration services "maintain" the ceramic
tile floor and grout, air conditioning and heating system, and
carpet. We agree that carpet cleaning, carpet stain protection,
ceramic tile floor and grout cleaning, grout stain protection,
air conditioning an heating system cleaning (with or without
application of sealant to duct line holes), and water
restoration services serve to "maintain" real property pursuant
to Rule 12A-1.051, F.A.C.

Carpet cleaning (with and without stain protection or deodorizer
treatment), ceramic tile floor and grout cleaning (with and
without grout stain protection treatment), water restoration,
and air conditioning and heating systems cleaning (with and
without application of sealant to duct line holes) services have
the effect of "maintaining," the carpet, ceramic tile floor and
grout, and air conditioning and heating systems. These services
therefore constitute a "real property improvement" pursuant to
Rule 12A-1.051(2)(d), F.A.C., and a "real property contract"
pursuant to Rule 12A-1.051(2)(h)1.a., F.A.C. As stated above,
the sale and installation by the same person of carpeting
attached with tacks, glue, or other permanent means and serving
as the finished floor is considered a real property contract.
See Rules 12A-1.051(2)(h)2.b., (17)(g), and (18)(a), F.A.C.
Accordingly, the following services for which you requested
advisement, individually or in any combination with each other,
constitute the performance of a real property contract and are
subject to the general rule contained in Rule 12A-1.051(4),
F.A.C.:

Carpet cleaning, stain protection, and
deodorizing/sanitizing services;

Ceramic tile floor and grout cleaning and grout stain
protection services;

Air conditioning and heating system cleaning services (with
or without application of sealant to duct line holes);

Water restoration services (FOOTNOTE #3); and

Sale and installation of wall-to-wall carpeting.

The Taxpayer, pursuant to rule 12A-1.051(4), F.A.C., should pay
tax to its suppliers on all purchases of materials and supplies
used to perform these services. In addition, the Taxpayer
should not charge tax to its customers, regardless of whether
charges for materials and labor are separately stated, or
whether the charges for any combination of the above services
are separately stated. Id.

B. Contracts Solely For the Repair, Maintenance, Etc. of
Tangible Personal Property

Section 212.02(19), F.S., states that "tangible personal
property" is "personal property which may be seen, weighed,
measured, or touched or is in any manner perceptible to the
senses." Clearly, cloth upholstered furniture constitutes
tangible personal property, as do area rugs or carpets. See
Rule 12A-1.051(18)(a) and (g), F.A.C. Although not expressly
stated in your request, it is assumed that the Taxpayer provides
cleaning, stain protectant, and deodorizing services to area
rugs or area carpets if requested.

A "sale" for the purposes of Chapter 212, F.S., involves the
"transfer of title or possession, or both," of tangible personal
property - "property which may be seen, weighed, measured, or
touched or is in any manner perceptible to the senses" - "in any
manner or by any means whatsoever... for a consideration."
Sections 212.02(15)(a) and (19), F.S. The Taxpayer offers the
following described services, for which it makes a separately
stated charge:

Stain Protection. The protectant applied by Taxpayer to cloth

upholstered furniture and area rugs or carpets adheres to the
fibers of the property. The protectant provides protection from
stains, aids in the removal of dried dirt or substances, and
provides some water repellency. The protectant is not
permanent, rather, it gradually disintegrates due to use and
cleaning.

Deodorizer or Sanitizer. Taxpayer uses a liquid based deodorizer
to destroy or contain odor causing material in upholstered
furniture and area rugs or carpets, and occasionally a liquid
sanitizer to help alleviate the odor. Both are allowed to dry
naturally. It is assumed, for the purpose of this advisement,
that whatever is left behind of the deodorizer and sanitizer
when dry is both minimal and unintentional, and of brief
duration. (FOOTNOTE #4) Therefore, the application of
deodorizer or sanitizer will not be considered, in this
instance, to involve the transfer of tangible personal property
to the customer.

With regard to stain protection, the Taxpayer transfers tangible
personal property - the protectant - to the customer for a
separately stated charge. Although not permanent, the
protectant is intended to and in fact does adhere to the
customer's property for more than a transitory period of time.
Thus, there is a "transfer... in any manner or by any means
whatsoever" of "title and possession... of tangible personal
property for a consideration," that constitutes a taxable
"retail sale." Section 212.02(14)(a) and (15)(a), F.S.

Section 212.02(16), F.S., provides that the taxable "sales
price" of tangible personal property is the "total amount paid"
for an item, and includes "services that are part of the sale."
The taxable "sales price" expressly includes "the consideration
for a transaction which requires both labor and material to
alter, remodel, maintain, adjust, or repair tangible personal
property." Id. Thus, the entire charge for a transaction
requiring both labor and materials to "alter, remodel, maintain,
adjust, or repair tangible personal property" is subject to tax.
Under the same reasoning adopted above regarding real property
contracts, the Department submits that cleaning, stain
protection, and deodorizing upholstered furniture constitutes

"maintaining" the furniture. Rule 12A-1.006, F.A.C., implements
the provisions of Chapter 212, F.S., and governs the taxability
of charges made by dealers who adjust, apply, alter, install,
maintain, remodel, or repair tangible personal property. Rule
12A-1.006, F.A.C., clearly applies to the Taxpayer's services
relating to upholstered furniture and area rugs or carpets.

Rule 12A-1.006(1)(a), F.A.C., provides that when parts are
furnished by repairer, the "entire charge the repairer makes to
a customer for adjusting, applying, installing, maintaining,
remodeling, or repairing tangible personal property is taxable."
Materials that are incorporated into and become a part of the
tangible personal property repaired, remodeled, or maintained
are not taxable to the dealer when purchased. Rule 12A1.006(1)(c), F.A.C. Materials and supplies used but which do
not become part of the tangible personal property are taxable
when purchased as overhead items. Rule 12A-1.006(1)(c), F.A.C.
Charges for repairs requiring labor or service only are taxable
unless the repairer can establish by its own records that the
repairer did not furnish any tangible personal property which
was incorporated into or attached to the repaired item. Rule
12A-1.006(4), F.A.C. Contracts covering a combination of work
on both real and personal property (mixed contracts) are
governed by the provisions of Rule 12A-1.051, F.A.C., and will
be discussed separately, below. Rule 12A-1.006(3), F.A.C.

Rule 12A-1.006(16), F.A.C., provides an example of the
application of the rules stated in Rule 12A-1.006(1), F.A.C.,
using a factual situation closely analogous to the stain
protection services provided by the taxpayer - car washes. The
charge for a plain wash job, in which only detergent or water
softener is added to the water, is exempt. The purchase of
detergents or water softeners for use in the performance of the
wash job is taxable to the dealer. Rule 12A-1.006(16)(a), F.A.C.
However, the entire charge for a wash job, in which wax,
silicones, or any other substance are added that forms a
protective film or coating, is taxable. The purchase of
materials which form the protective film or coating is exempt to
the dealer. Rule 12A-1.006(16)(b), F.A.C. The purchase of
machinery and equipment, parts and accessories, soaps, brushes,
or other supplies for operation of the car wash facility is

taxable to the dealer. Rule 12A-1.006(16)(c), F.A.C. Dealers
providing both taxable and exempt wash jobs are required to
maintain documentation to distinguish between taxable and
nontaxable transactions, otherwise it is presumed that all wash
jobs are taxable. Rule 12A-1.006(16)(d), F.A.C.

1. Services Including the Application of Stain Protectant,
   Deodorizer, or Sanitizer

The Taxpayer's position is that when, for instance, furniture
cleaning and furniture stain protection services are provided tax should only be charged to the customer for the separately
stated charge for stain protection. The Taxpayer states, with
regard to the charges for cleaning and the application of
protectant, that these services are mutually exclusive: the
Taxpayer does not require a customer to have its furniture
cleaned prior to applying the stain protectant; and, the
Taxpayer separately itemizes the charges for such services when
they are performed for a customer. Therefore, the Taxpayer
should only charge tax to the customer on the provision of the
stain protectant service, and not on the cleaning services.

However, Section 212.02(16), F.S., indicates that the entire
charge for a transaction requiring both labor and materials to
alter, remodel, maintain, adjust, or repair tangible personal
property is subject to tax. Rule 12A-1.006(1)(a) and (16)(b),
F.A.C., indicate that when the Taxpayer applies protectant, the
entire charge made for both cleaning and application of tangible
personal property is subject to tax pursuant to Chapter 212,
F.S. In addition, cleaning service and the service of applying
protectant to the same article of tangible personal property are
complementary, rather than mutually exclusive services. In most
instances, the benefit or advantage of applying the protectant
would be completely lost if the property was not cleaned
immediately prior to application.

Accordingly, the charges the Taxpayer makes to customers for the
following services are taxable in their entirety pursuant to
Section 212.05(1)(a)1.a., F.S.:

Furniture (FOOTNOTE #5) stain protection services;

Furniture cleaning and stain protection services; and

Furniture cleaning, stain protection, and
deodorizing/sanitizing services.

The purchase of the protectant by the Taxpayer is therefore not
taxable to the Taxpayer at the time of purchase. Rule 12A1.006(1)(c), F.A.C. Materials and supplies used by the Taxpayer
which do not become part of the tangible personal property are
taxable when purchased as overhead items. Rule 12A-1.006(1)(c),
F.A.C.

2. Cleaning Services Only

Rule 12A-1.006(4), F.A.C., provides that charges for repairs
requiring only labor or service are taxable unless the Taxpayer
can establish by its own records that it did not furnish any
tangible personal property which was incorporated into or
attached to the repaired item. Accordingly, the following
service is not taxable if the Taxpayer maintains records
indicating that no tangible personal property was furnished that
became incorporated into or attached to the item serviced:

Furniture (FOOTNOTE #6) cleaning;

Furniture deodorizing/sanitizing services; and

Furniture cleaning and deodorizing/sanitizing services.

Materials and supplies used by the Taxpayer but not becoming
part of the tangible personal property serviced are taxable to
the Taxpayer when purchased as overhead items. Rule 12A1.006(1)(c), F.A.C.

(With any combination of the services in A., above, with those
here in B.2., the Taxpayer should not charge tax to its
customers. Instead, the Taxpayer should pay tax to its suppliers
on all its purchases. Rules 12A-1.006(1)(c) and 12A-1.051(4),
F.A.C.)

C. Mixed Contracts

Contracts covering a combination of work on both real and
personal property are "mixed contracts," and are governed by the
provisions of Rule 12A-1.051, F.A.C. See Rules 12A-1.006(3) and
12A-1.051(8), F.A.C. A "mixed contract" involves a real
property improvement, maintenance, or repair as well as the
provision of tangible personal property that remains tangible
personal property and does not become part of the real property.
Rule 12A-1.051(8), F.A.C. The taxability of a mixed contract
depends on the predominant nature of the work performed and upon
the contract terms. Rule 12A-1.051(8), F.A.C. If the
predominant nature of a mixed contract is a contract for real
property improvements, the contract is treated as if the entire
contract was solely regarding real property. Rule 12A1.051(8)(a), F.A.C. If the predominant nature of a mixed
contract is a contract for tangible personal property, the
contract is treated as if it entirely involved tangible personal
property. Rule 12A-1.051(8)(b), F.A.C. The determination of
the predominant nature of the contract depends upon the facts
and circumstances of each individual case. See Rule 12A1.051(8)(c), F.A.C.

The Taxpayer's position is that the taxability of mixed
contracts depends upon the predominant nature of the contract.
However, Rule 12A-1.051(8)(d), F.A.C., provides in pertinent
part:

If a mixed contract clearly allocates the contract price
among the various elements of the contract, and such
allocation is bona fide and reasonable in terms of the
costs of materials and nature of the work to be performed,
taxation will be in accordance with the allocation....
(emphasis supplied)

Here, the Taxpayer separately itemizes the charges for each
service it performs - thereby allocating the contract price
among the elements of the contract. Further, the various
services are available individually or in combination with other
services - it is assumed, therefore, that the price allocated by
the Taxpayer is reasonable in terms of the cost of materials and

nature of the work performed. Thus, the contract between the
Taxpayer and the customer provides a reasonable and clear
allocation of the total contract price among the elements of the
contract, and should be taxed according to this allocation.
Rule 12A-1.051(8)(d), F.A.C. The components of the Taxpayer's
mixed contracts relating to real property and those relating to
tangible personal property are therefore viewed as distinct from
each other, with each distinct component being subject to tax as
discussed in Sections A. and B., above:

Services relating to the repair, maintenance, etc. of real
property are subject to tax as discussed in A., above; and

Services relating to the repair, maintenance, etc. of
tangible personal property are taxable as discussed in B.
above.

Example: In item J. you requested advice regarding the
taxability of a contract involving carpet cleaning, carpet
stain protection, furniture cleaning, and furniture stain
protection.

(1) The separately stated charges to the customer for
carpet cleaning and carpet stain protection are not subject
to tax. The Taxpayer should pay tax to its suppliers on all
purchases. See the discussion in A., above, and Rule 12A1.051(4), F.A.C.

(2) The separately stated charges to the customer for
furniture cleaning and furniture stain protection are
subject to tax under Section 212.05(1)(a)1.a., F.S. The
purchase of the protectant is not taxable to the Taxpayer
when purchased. Materials and supplies used by the Taxpayer
which do not become a part of the furniture are taxable to
the Taxpayer when purchased as overhead items. See the
discussion in B.1., above and Rule 12A-1.006(1)(c), F.A.C.

Example: In item H. you requested advice regarding the
taxability or a contract involving carpet cleaning and
stain protection and furniture cleaning.

(1) The separately stated charges to the customer for
carpet cleaning and carpet stain protection are not subject
to tax. The Taxpayer should pay tax to its suppliers on all
purchases. See the discussion in A., above, and Rule 12A1.051(4), F.A.C.

(2) The separately stated charge to the customer for
furniture cleaning is not subject to tax if the Taxpayer
maintains records that no tangible personal property was
furnished that became incorporated into or attached to the
furniture. Materials and supplies used by the Taxpayer but
not becoming part of the furniture are taxable to the
Taxpayer when purchased as overhead items. See the
discussion in B.2., above, and Rule 12A-1.006(1)(c) and
(4), F.A.C.

Alternatively, the Taxpayer submits that the services offered
are mutually exclusive and separately itemized, so that only the
charge for the application of stain protectant to tangible
personal property should be subject to tax. As discussed in
Section B.1., above, the charge for any accompanying cleaning
services with regard to these applications is also part of the
taxable "sales price."

Response

Based on the discussion and analysis, above, the following
responses are offered to the Taxpayer's specific requests for
advisement:

A. Carpet Cleaning. The charge to the customer for cleaning
services is not subject to tax. The Taxpayer should pay tax to
its suppliers on all purchases of materials and supplies used to
perform this service. See II.A. of the Analysis and Discussion,
above.

B. Carpet Cleaning and Carpet Stain Protection. The charges to
the customer for cleaning and stain protection services are not
subject to tax, regardless of whether the charges for the two
services are separately stated. The Taxpayer should pay tax to
its suppliers on all purchases of materials and supplies used to

perform these services. See II.A. of the Analysis and
Discussion, above.

C. Carpet Deodorizing. The charge to the customer for
deodorizing (or sanitizing) is not subject to tax. The Taxpayer
should pay tax to its suppliers on all purchases of materials
and supplies used to perform this service. See II.A. of the
Analysis and Discussion, above.

D. Furniture Cleaning. (FOOTNOTE #7) The cleaning service is
not taxable if the Taxpayer maintains records indicating that no
tangible personal property was furnished and incorporated or
attached to the furniture. Materials and supplies purchased and
used by the Taxpayer to perform the service are taxable to the
Taxpayer when purchased as overhead items. See II.B.2. of the
Analysis and Discussion, above.

E. Furniture Cleaning and Stain Protection. The charges made
to the customer for both services are subject to tax, regardless
of whether such charges are separately stated. Purchase of the
protectant is not taxable to the Taxpayer when purchased.
Materials and supplies used in performing the services but which
do not become incorporated or attached to the furniture are
taxable to the Taxpayer when purchased as overhead items. See
II.B.1. of the Analysis and Discussion, above.

F. Furniture Deodorizing. The charge made to the customer for
deodorizing (or sanitizing) is not taxable if the Taxpayer
maintains records indicating that no tangible personal property
was furnished and incorporated or attached to the furniture.
Materials and supplies purchased and used by the Taxpayer to
perform the service are taxable to the Taxpayer when purchased
as overhead items. See II.B.1. of the Analysis and Discussion,
above.

G. Carpet cleaning and Furniture Cleaning. The charge to the
customer for carpet cleaning services is not subject to tax.
The Taxpayer should pay tax to its suppliers on all purchases of
materials and supplies used to perform the carpet cleaning
service. The furniture cleaning service is not taxable if the
Taxpayer maintains records indicating that no tangible personal

property was furnished and incorporated or attached to the
furniture. Materials and supplies purchased and used by the
Taxpayer to perform the furniture cleaning service are taxable
to the Taxpayer when purchased as overhead items. See II.C. of
the Analysis and Discussion, above, as well as responses A. and
D., above.

H. Carpet Cleaning, Carpet Stain Protection, and Furniture
cleaning. The charges to the customer for carpet cleaning and
stain protection services are not subject to tax, because they
are separately stated from the tangible personal property
elements of the contract. (FOOTNOTE #8) The Taxpayer should pay
tax to its suppliers on all purchases of materials and supplies
used to perform the carpet cleaning and stain protection
services. The furniture cleaning service is not taxable if the
Taxpayer maintains records indicating that no tangible personal
property was furnished and incorporated or attached to the
furniture. Materials and supplies purchased and used by the
Taxpayer to perform the furniture cleaning service are taxable
to the Taxpayer when purchased as overhead items. See II.C. of
the Analysis and Discussion, above, as well as responses B. and
D., above.

I. Carpet Cleaning, Furniture Cleaning, and Furniture Stain
Protection. The charge to the customer for carpet cleaning
services is not subject to tax. The Taxpayer should pay tax to
its suppliers on all purchases of materials and supplies used to
perform the carpet cleaning service. The charges made to the
customer for both furniture cleaning and furniture stain
protection services are subject to tax, regardless of whether
such charges are separately stated. Purchase of the protectant
is not taxable to the Taxpayer when purchased. Materials and
supplies used in performing the furniture cleaning and furniture
stain protection services but which do not become incorporated
or attached to the furniture are taxable to the Taxpayer when
purchased as overhead items. See II.C. of the Analysis and
Discussion, above, as well as responses A. and E., above.

J. Carpet Cleaning, Carpet Stain Protection, Furniture
Cleaning and Furniture Stain Protection. The charges to the
customer for carpet cleaning and carpet stain protection

services are not subject to tax, regardless of whether the
charges for the two services are separately stated. The
Taxpayer should pay tax to its suppliers on all purchases of
materials and supplies used to perform the carpet cleaning and
carpet stain protection services. The charges made to the
customer for both furniture cleaning and furniture stain
protection services are subject to tax, regardless of whether
such charges are separately stated. Purchase of the protectant
is not taxable to the Taxpayer when purchased. Materials and
supplies used in performing the furniture cleaning and furniture
stain protection services but which do not become incorporated
or attached to the furniture are taxable to the Taxpayer when
purchased as overhead items. See II.C. of the Analysis and
Discussion, above, as well as responses B. and E., above.

K. Ceramic Tile Floor and Grout Cleaning. See response A.,
above.

L. Ceramic Tile Floor Cleaning and Grout Stain Protection. See
response B., above.

M. Air Conditioning and Heating System Cleaning. See response
A., above.

N. Water Restoration Services. The charge to the customer for
water restoration services is not subject to tax. The Taxpayer
should pay tax to its suppliers on all purchases of materials
and supplies used to perform this service. See II.A. of the
Analysis and Discussion, above.

O. Sale and Installation of Wall-to-Wall Carpeting. The
Taxpayer should not charge the customer tax for the sale and
installation of the carpeting, regardless of whether charges for
material and labor are separately stated. The Taxpayer should
pay tax to its suppliers on all purchases of materials and
supplies used to perform this service. See II.A. of the
Analysis and Discussion, above.

NONRESIDENTIAL SERVICES

The Taxpayer has also requested that the Department address the

taxability of the services addressed above, when such services
are provided to nonresidential customers.

Carpet and Furniture Cleaning

As stated above, Section 212.05(1)(i)1.b., F.S., which became
effective September 1, 1992, provides that charges for
nonresidential cleaning services (SIC Industry Group Number 734)
are taxable at the rate of six percent (6%). A local
discretionary tax may also apply. See Section 212.054(2)(a),
F.S. Rule 12A-1.0091, F.A.C., which became effective May 13,
1993, governs the taxability of cleaning services. The original
version of the rule included as taxable cleaning services
nonresidential "carpet cleaning on customer's premises" and
nonresidential "furniture and upholstery cleaning on customer's
premises." Rule 12A-1.0091(1)(a)3. and 9., F.A.C. (1993).
However, carpet cleaning on a customers' premises, furniture
cleaning on a customers' premises, and upholstery cleaning on a
customers' premises are services classified within SIC code
number 7217, Industry Group Number 721. Accordingly, the
provisions of Rule 12A-1.0091, F.A.C., regarding nonresidential
carpet, furniture, and upholstery cleaning on a customer's
premises were removed effective July 1, 1999. [Rule 12A1.0091(1)(a), F.A.C., also provides that taxable cleaning
services do not include cleaning services provided for tangible
personal property.]

Therefore, Section 212.05(1)(i)1.b., F.S., does not apply to the
Taxpayer's cleaning services when applied to carpet or
upholstered furniture and provided to a nonresidential customer.
The taxability of those services is as discussed in section II.,
regarding residential services, above.

Air Conditioning and Heating Systems

The taxpayer also cleans air conditioning and heating systems.
Occasionally, a duct system has porous holes in the duct line.
The taxpayer applies a sealant type coating to such holes to
ensure the integrity of the duct system. SIC code number 7349
and Rule 12A-1.0091(1)(a), F.A.C., generally apply to cleaning
services to the interior of a building. The nearest comparable

service to air conditioning and heating system cleaning
contained in Industry Group Number 734, SIC code number 7349, is
chimney cleaning service. See also Rule 12A-1.0091(1)(a)3.,
F.A.C. Furnace and chimney cleaning services are also contained
in SIC code number 7699, and services contained in SIC code
number 7699 are not taxable under Section 212.05(1)(i)1.b., F.S.
Additionally, SIC code number 7349 and Rule 12A-1.0091(1)(a),
F.A.C., are susceptible to an interpretation that excludes the
Taxpayer's services regarding air conditioning and heating
systems from the services that are subject to tax.

It is well settled under Florida law that taxing statutes are to
be strictly construed in favor of the taxpayer, and that this is
particularly true when a taxing statute is susceptible to two
meanings - one imposing the tax and one providing relief from
taxation. See Department of Revenue v. Brookwood Associates,
324 So.2d 184, 187 (Fla. 1st DCA 1975), cert. denied, 366 So. 2d
600 (Fla. 1976). Because air conditioning and heating system
cleaning may be interpreted as falling both within and outside
the scope of Section 212.05(1)(i)1.b., F.S., the statute should
be interpreted as not taxing such services. Therefore, Section
212.05(1)(i)1.b., F.S., does not apply to the Taxpayer's
cleaning services when applied to air conditioning and heating
systems and provided to a nonresidential customer. The
taxability of those services is as discussed in section II.,
regarding residential services, above.

Ceramic Tile Flooring and Grout

Rule 12A-1.0091(1)(a), F.A.C., describes nonresidential cleaning
services as "services (not involving repair) rendered to
maintain the clean and sanitary appearance and operating
condition of a nonresidential building." Rule 12A-1.0091(1)(a),
F.A.C., continues by providing a laundry list of examples of the
types of services that are subject to tax. This list mirrors
the services listed under SIC code number 7349. As mentioned
above, SIC code number 7349 and Rule 12A-1.0091(1)(a), F.A.C.,
generally applies to cleaning services rendered to the interior
of a building. The Taxpayer's cleaning services when applied to
a nonresidential customer's ceramic tile flooring and grout
clearly is "rendered to maintain the clean and sanitary

appearance and operating condition" of the interior of the
customer's premises, and constitutes the cleaning or maintenance
of such premises. Therefore, the charge to a nonresidential
customer for cleaning ceramic tile flooring and grout is subject
to tax under Section 212.05(1)(i)1.b., F.S., plus any applicable
local discretionary surtax. Cleaning service providers are
considered the ultimate users or consumers of the tangible
personal property they purchase and use in connection with their
service, and are required pay the tax imposed on such sales to
their dealers. Rule 12A-1.0091(5), F.A.C.

It is noted that the taxable amount under Section
212.05(1)(i)1.b., F.S., does not include the separately stated
charge for stain protection service to the ceramic tile flooring
and grout. In contrast to Section 212.05(1)(a), F.S., which
levies a tax on the taxable "sales price" (as defined by Section
212.02(16), F.S.), Section 212.05(1)1.b., F.S., levies a tax
only upon the "charge" to the customer for "nonresidential
cleaning" services. The separately stated charge for grout
stain protection does not involve a charge for cleaning.
Rather, as discussed above under II.A regarding residential
services, the application of stain protection serves to
"maintain" the grout by keeping it in a state of good repair and
stain free.

Response

The responses provided with regard to the services provided to
residential customers, above, are changed when provided to
nonresidential customers only as follows:

K. Ceramic Tile Floor and Grout Cleaning. The charge to a
customer for ceramic tile floor and grout cleaning is subject to
tax pursuant to Section 212.05(1)(i)1.b., F.S. Purchases of
materials and supplies by the Taxpayer and used in performance
of this service is taxable to the Taxpayer when purchased. Rule
12A-1.0091(5), F.A.C.

L. Ceramic Tile Floor Cleaning and Grout Stain Protection. The
charge to a customer for ceramic tile floor and grout cleaning
is as discussed in response K., immediately above. The Taxpayer

should not charge tax to its customer for the stain protection
service. The Taxpayer should pay tax to its suppliers on all
purchases of materials and supplies used to perform the stain
protection service. See II.A. of the Analysis and Discussion
regarding residential services, above.

Conclusion

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
predicated 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, your request and
related backup documents are public records under Chapter 119,
F.S., and are subject to disclosure to the public under the
conditions of s. 213.22, F.S. Confidential information must be
deleted before public disclosure. In an effort to protect
confidentiality, we request you provide the undersigned with an
edited copy of your request for Technical Assistance Advisement,
the backup material and this response, deleting names, addresses
and any other details which might lead to identification of the
taxpayer. Your response should be received by the Department
within 15 days of the date of this letter.

If you have any further questions with regard to this matter and
wish to discuss them, you may contact me directly at (850) 9224710.

Sincerely,

Thomas K. Butscher
Senior Attorney
Technical Assistance & Dispute Resolution

TKB\
Control # 56988

FOOTNOTE #1 -As defined in Section 212.02(12), F.S.

FOOTNOTE #2 - Retail sale plus installation contracts, described
in Rule 12A-1.051(3)(d), F.A.C., are treated differently. See
Rule 12A-1.-51(5), F.A.C. The Taxpayers contracts as described
do not constitute retail sale plus installation contracts.

FOOTNOTE #3 -The facts indicate that the Taxpayer's water
restoration services may sometimes involve furniture. In the
ordinary case, it would seem that water restoration that also
involves services to furniture should be treated as a real
property contract pursuant to Rule 12A-1.051(8)(a), F.A.C.,
because the predominant nature of the contract will be for the
improvement of real property. See the discussion of "mixed
contracts" in C., below. It is noted that under circumstances
where the predominant nature of the contract is one regarding
tangible personal property, pursuant to Rule 12A-1.051(8)(b),
F.A.C., the result is essentially the same as when the
predominant nature of the contract is the improvement of real
property. See the discussion in II.B.2., below.

FOOTNOTE #4 - If the intention is to leave deodorizer or
sanitizer behind and the deodorizer or sanitizer is to remain
and take effect for more than a transitory period - the
application would, instead, be treated identically to stain
protection, as discussed below.

FOOTNOTE #5 - Although not included in your request, "area rugs
and carpets" may be substituted for "furniture" everywhere in
this list because they are considered tangible personal
property. See Rule 12A-1.051(18)(a), F.A.C.

FOOTNOTE #6 -"Area rugs and carpets" may be substituted for
"furniture" everywhere in this list because they are considered
tangible personal property. See Rule 12A-1.051(18)(a), F.A.C.

FOOTNOTE #7 - Although not included in your request, "area rugs

and carpets" may be substituted for "furniture" in these
responses, because area rugs and carpets are considered tangible
personal property. See Rule 12A-1.051(18)(a), F.A.C.

FOOTNOTE #8 - As long as the real property and tangible personal
property elements of the contract are separately stated from
each other, the allocation between the two elements will be
respected. The Taxpayer could, for example, aggregate multiple
real property elements together into a single separately stated
charge and multiple tangible personal property elements into
another single separately stated charge, and Rule 12A1.051(8)(d), F.A.C., would still apply.