Which carpet, furniture, contents, structural-cleaning, storage, and drying-equipment charges were taxable when separately stated?

Plain-English summary

Carpet and furniture cleaning were taxable. Carpet reinstallation, cleaning miscellaneous contents, and structural cleaning were nontaxable when separately stated.

Drying equipment was a taxable rental if the customer received possession or control, but a nontaxable service if the company retained continuous control.

Cleaning and installation

The statute expressly taxed cleaning and renovation of furniture, carpets, and rugs. Reinstalling carpet that had been lifted for cleaning or drying was excluded installation labor when separately stated.

Cleaning dishes, decorative items, and other miscellaneous contents was not an enumerated taxable service. Cleaning walls, cabinets, and ceilings was likewise nontaxable and analogous to janitorial work.

Storage

The ruling identified storage space for clothing, furs, and rugs as taxable. Cold storage was also taxable. The source did not expressly classify every other item-storage arrangement.

Drying equipment

When the equipment left the company's continuous control, the customer possessed or used tangible personal property for consideration and the transaction was a taxable rental.

When the company continuously controlled the equipment while delivering, monitoring, and retrieving it, the arrangement was a service rather than a rental. That service was nontaxable when separately stated.

Common questions

Q: Was carpet cleaning taxable?

A: Yes.

Q: Was carpet reinstallation taxable?

A: No, when separately stated under the ruling.

Q: Was all contents cleaning taxable?

A: No. Furniture cleaning was taxable, while miscellaneous-item and structural cleaning were not.

Q: What controlled the drying-equipment result?

A: Continuous possession and control.

Citations and references

• La. R.S. 47:301(7)(a) — lease or rental definition
• La. R.S. 47:301(13)(a) — separately stated installation labor
• La. R.S. 47:301(14)(e)-(f) — cleaning and storage services
• La. R.S. 47:302(B)-(C) — tax on rentals and taxable services
• LAC 61:III.101.C — Private Letter Ruling authority and reliance statement

Source

• Landing page: Louisiana Department of Revenue Policies
• Original PDF: LA PLR 01-006

Original ruling text

STATE OF LOUISIANA

DEPARTMENT OF REVENUE
M. J. "MIKE" FOSTER, JR.

CYNTHIA BRIDGES

Governor

Secretary

Private Letter Ruling 01-006
Redacted Version
December 12, 2001
A Private Letter Ruling based upon the following scenario was requested:
“A Louisiana corporation provides services in Louisiana. It cleans and installs
carpet, provides contents cleaning/restoration, and rents drying equipment, which it
delivers, monitors and picks up. The corporation currently collects and pays sales
tax on these services.”
The Department of Revenue was asked to confirm that Louisiana law does require the collection and
payment of sales tax on the service of carpet cleaning, carpet installation, contents cleaning/restoration,
and the rental of drying equipment.
Louisiana law does require the collection and payment of sales tax on the services of carpet cleaning
and contents cleaning/restoration of furniture. Louisiana law does not require the collection and
payment of sales tax on the services of installing carpet, contents cleaning/restoration of miscellaneous
items, structural cleaning, or on the rental of drying equipment if certain conditions are met as long as
the charge for each of these services is separately stated.
ANALYSIS
Carpet Cleaning
La. R.S. 47:302(C) provides that a tax is levied “upon all sales of services.” La. R.S. 47:301(14)(e)
provides that “‘sales of services’ means and includes…the furnishing of laundry, cleaning, pressing and
dyeing services, including by way of extension and not of limitation, the cleaning and renovation of
clothing, furs, furniture, carpets and rugs, and the furnishing of storage space for clothing, furs and
rugs.” The statute clearly states that the cleaning of carpets is the sale of a service. Therefore, sales tax
should be collected and remitted on such carpet cleaning services.
Installation
La. R.S. 47:302(C) provides that a tax is levied “upon all sales of services.” The tax is computed based
upon the sales price. La.R.S. 47:301(13)(a) defines the term “sales price” as the total amount for which
tangible personal property is sold…and includes the cost of materials used, labor or service costs…nor
shall the sales price include the amount charged for labor or services rendered in installing, applying,
remodeling, or repairing property sold.” This statute clearly excludes from the sales price any amount
charged for installation. Therefore, the installation of carpet, which is really the reinstallation of carpet
that has been lifted to be cleaned or dried, is not a taxable service. This is only true if the installation
charge is separately stated.
Contents Cleaning/Restoration
“Contents cleaning/restoration” is a service that encompasses the cleaning of all articles within the
establishment except clothing. There is an hourly charge for the service of cleaning the miscellaneous
items such as dishes and decorative items. This service is not among the taxable services enumerated in

the statutes. Therefore, the service of cleaning the miscellaneous items is not a taxable service. This is
true only if the charge is separately stated.
There is a separate charge for each item of furniture cleaned. La. R.S. 47:301(14)(e) provides that
“‘sales of services’ means and includes…the furnishing of laundry, cleaning, pressing and dyeing
services, including by way of extension and not of limitation, the cleaning and renovation of clothing,
furs, furniture, carpets and rugs, and the furnishing of storage space for clothing, furs and rugs.”
Therefore, the service of cleaning each item of furniture is a taxable service.
There is also a separate charge for structural cleaning which involves cleaning the walls, cabinets and
ceilings. There is a per foot charge for this service. This service does not fit within any of the
definitions of “sales of services” and is therefore not a taxable service. Additionally, this service is
analogous to janitorial services, which are not taxable. Once again, these services are not taxable only
if the charge is separately stated.
The corporation sometimes stores items such as furniture for the customer during the cleaning process
and charges for this service. La. R.S. 47:301(14)(e) provides that “‘sales of services’ means and
includes…the furnishing of storage space for clothing, furs and rugs.” Therefore, the service of storing
clothing, furs and rugs is a taxable service. If any cold storage is provided, sales tax must be collected
and remitted. This is because cold storage is included in the definition of “sales of services” in La. R.S.
47:301(14)(f).
Rental of Drying Equipment
La. R.S. 47:302(B) provides that “There is hereby levied a tax upon the lease or rental within this state
of each item or article of tangible personal property, as defined herein;…” La. R.S. 47:301(7)(a)
defines the term “lease or rental” in part as “ the leasing or renting of tangible personal property and the
possession or use thereof by the lessee or renter, for a consideration, without transfer of the title of such
property.” Thus, if the drying equipment is outside of the continuous control of the corporation, the
rental definition is met and the transaction is subject to sales tax. However, if the corporation is in
control of the equipment at all times, the definition of rental is not met and a service has been provided.
If this is the case, the service is not subject to sales tax as it is not one of the enumerated taxable
services in the statutes. This is true only if the charge for the service is separately stated.
If you should have any questions or need additional information, please contact the Policy Services
Division at (225) 219-2780.
Sincerely,
Cynthia Bridges
Secretary
By:

Cynthia D. Pugh
Attorney
Policy Services Division

A Private Letter Ruling (PLR) is issued under the authority of LAC 61:III.101( C ). A PLR provides guidance to a specific taxpayer at
the taxpayer’s request. It is a written statement issued to apply principles of law to a specific set of facts or a particular tax situation and is
limited to the matters specifically addressed. A PLR does not have the force and effect of law and may not be used or cited as precedent.
A PLR is binding on the Department only as to the taxpayer making the request and only if the facts provided with the request were
truthful and complete and the transaction was carried out as proposed. The Department’s position concerning the particular tax situation
addressed remains in effect for the requesting taxpayer until a subsequent declaratory ruling, rule, court case, or statute supersedes it.