Were dust-and-debris cleaning services performed during building construction subject to Florida sales tax?

Plain-English summary

The contractor installed reinforced plastic sheeting below ceilings during construction or roof work. The temporary barrier trapped dust and light debris, remained in place from days to months, and was removed and discarded after use. The contractor sometimes cleaned the surrounding area as well.

Florida classified this work under construction special-trade activities rather than the SIC group for taxable nonresidential building cleaning. The during-construction sheeting, debris removal, and related cleanup charges were not subject to sales tax.

The ruling expressly did not cover cleaning performed after the construction project was complete. The requester stated that it collected sales tax on post-completion services for nonresidential buildings.

What this means for you

Timing and industry classification controlled the result. Cleaning integrated into an active construction process was treated differently from ordinary janitorial or post-construction building cleaning.

Common questions

Was installing the temporary dust barrier taxable? No, as part of the described construction-cleaning service.

Was cleanup after removing it taxable? No, when performed during the construction phase on these facts.

Did the ruling exempt post-completion nonresidential cleaning? No.

Citations and references

• Fla. Stat. § 212.05(1)(i) and Fla. Admin. Code r. 12A-1.0091(1), as discussed in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 09A-022

Original ruling text

SUMMARY
QUESTION:
Whether construction cleaning services which involve the installation of a plastic
sheeting material (Product) during the construction process are subject to sales tax.
ANSWER:
The cleaning services performed during the construction phases of a building, which in
this case consist of using Product to remove dust and debris from the construction site,
and also cleaning the surrounding area after the Product has been removed, are not
subject to sales tax.
May 11, 2009
XXX
Re:

Technical Assistance Advisement 09A-022
XXX
Sales Tax – Tax on Services
Taxability of Construction Cleaning Services
Section: 212.05(1)(i), F.S.
Rule: 12A-1.0091(1), F.A.C.

Dear XXX:
This letter is a response to your letter dated March 6, 2009, for the Department's issuance
of a Technical Assistance Advisement ("TAA") pursuant to Section 213.22, F.S., and
Rule Chapter 12-11, F.A.C., regarding the Department’s position concerning the
taxability of construction cleaning services performed on buildings during construction.
An examination of your letter has established that you have complied with the statutory
and regulatory requirements for issuance of a TAA. Therefore, the Department is hereby
granting your request for issuance of a TAA.
ISSUE STATEMENT
Whether construction cleaning services, which involve the installation and removal of a
plastic “Product” (Product) during the construction process, are subject to sales tax.
FACTS
In order to prevent dust and debris from falling into the work areas of newly constructed
buildings during the construction process, the taxpayer installs Product, which is then
removed by the taxpayer once its use is completed. Product is a 6 mil reinforced
translucent polyethylene sheet that is capable of holding up to 10 pounds of light dust and
debris per 100 square feet. It is installed below the ceiling and acts as a temporary barrier

that traps dust and debris for cleaning purposes. It is fastened to the building and
fixtures, and sealed with tape, adhesive, and pins. This material is also used to limit the
infiltration of dust and light debris during roofing repairs. Product may be installed from
two (2) days to several months as a temporary protection system before it is removed
from the job site. Once removed, all materials are disposed of by the taxpayer, and none
of the materials are sold or in any way transferred to the taxpayer’s customers.
In some cases, the taxpayer is also responsible for cleaning the surrounding areas after
the Product is removed. This includes cleaning services performed on outside (i.e.,
exterior) areas of the construction project, especially during roofing projects.
REQUESTED ADVISEMENT
Advice is requested on the taxability of the cleaning service described in the above facts.
The taxpayer is not requesting guidance on any projects that involve cleaning services
performed after the construction project has been completed. The taxpayer is collecting
sales tax in these instances, when the service is performed on nonresidential buildings.
The taxpayer is asking whether cleaning services during the construction phases are
subject to sales tax.
DISCUSSION AND STATUTORY AUTHORITY
Section 212.05(1)(i), F.S., and Rule 12A-1.0091(1)(a), F.A.C., provide that
nonresidential cleaning services are subject to sales tax. This provision in the Florida
Statutes states that tax is due and payable:
(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....
   The Standard Industrial Classification (SIC) is the statistical classification standard
   underlying all establishment-based Federal economic statistics classified by industry.
   The 1987 edition of the Standard Industrial Classification Manual describes Industry
   Group No. 734 as Services to Dwellings and Other Buildings. More specifically,
   establishments providing cleaning services under this industry group (Industry No. 7349)
   are described as follows:
   Establishments primarily engaged in furnishing building cleaning and
   maintenance services, not elsewhere classified, such as window cleaning,
   janitorial service, floor waxing, and office cleaning. . ..

Acoustical tile cleaning services
Building cleaning service, interior
Chimney cleaning service
Custodians of schools on a contract or
fee basis
Floor waxing service
Housekeeping (cleaning service) on a
contract or fee basis
Janitorial services on a contract or fee basis
Lighting maintenance service (bulb replacement and cleaning)

Maid service on a contract or fee basis
Maintenance, building: except repairs
Office cleaning service
Service station cleaning and degreasing
service
Telephone booths, cleaning and maintenance of
Venetian blind cleaning, including
work done on owners’ premises
Window cleaning service

Major Group 17, described as Construction - Special Trade Contractors, pertains to those
establishments engaged in construction activity. Under this group, Industry No. 1799
describes Special Trade Contractors, Not Elsewhere Classified, as follows:
Special trade contractors primarily engaged in construction work, not elsewhere
classified, such as construction of swimming pools and fences, erection and
installation of ornamental metal work, house moving, shoring work,
waterproofing, dampproofing, fireproofing, sandblasting, and steam cleaning of
building exteriors.
Listed under this general description are certain services that fall under this group.
Included in this list are the following services:
Cleaning building exteriors - contractors
Cleaning new buildings after construction contractors

Steam cleaning of building exteriors contractors

Section 212.05(1)(i)1.b., F.S., states the intention of the Legislature to tax services of a
type listed in SIC Industry Group No. 734. Within this SIC Industry Group is SIC
Industry No. 7349. As discussed above, SIC Industry No. 7349 includes cleaning
services.
However, construction cleaning services (i.e., removal of debris, paint, concrete, excess
compound, and other materials removed from the job site) are not included in the list.
These cleaning services that are performed at a construction site are classified under
Industry No. 1799, therefore, are not included under the taxable SIC code and not subject
to sales tax.

CONCLUSION
The cleaning services you perform during the construction phases of a building, which in
this case consists of using Product to perform cleaning services, and cleaning the
surrounding area after the Product has been removed, are not subject to sales tax.
This response constitutes a Technical Assistance Advisement under Section 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 Section 213.22, F.S. Our response is predicated

upon 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 from that which is 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 Section 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 10 days of the date of this letter.
If you have further questions with regard to this matter and wish to discuss them, you may
contact Technical Assistance and Dispute Resolution at 850/922-4833.
Sincerely,

Joseph D. Franklin III
Tax Conferee
Technical Assistance and Dispute Resolution
JDF3/lp
Control No. 61263