17 NCAC 07B .4501. RECEIPTS OF LAUNDRIES: ETC.

(a)  The gross receipts derived from the following are subject to the applicable statutory state and local sales or use tax:

(1)           services rendered by pressing clubs, cleaning plants, hat blocking establishments, dry cleaning plants, laundries, including wet or damp wash laundries and businesses known as launderettes and launderalls, and all similar type businesses;

(2)           the rental of clean linen, towels, wearing apparel and similar items;

(3)           soliciting cleaning, pressing, hat blocking and laundry or linen rental business;

(4)           rug cleaning services performed by persons operating rug cleaning plants or performed by any of the businesses named in this Rule when the rug cleaning service is performed at the plant.  Receipts from rug cleaning services performed at the customer's location by any of the businesses included in this Rule are not subject to sales and use tax;

(5)           charges for laundering or dry cleaning linen, towels, wearing apparel and similar items owned by lessors which is held for lease or rental.

Retail sales of detergents, bleaches and other taxable items of tangible personal property through vending machines are subject to the applicable statutory state and local sales or use tax.  With the exception of tobacco products, the receipts are taxed on 50 percent of the total amount for which the property is sold in the vending machine.

(b)  Charges by the businesses named in Paragraph (a) of this Rule for alterations or storage of garments are not a part of the gross receipts subject to tax when the charges are separately stated on their invoices and in their records.  When the charges are not separately stated, the total charge is subject to the applicable statutory state and local sales or use tax.

(c)  Sales to the businesses named in Paragraph (a) of this Rule, other than lessors, of thread, buttons, zippers, pockets and other similar tangible personal property for use or consumption in making repairs or alternations to garments being laundered, cleaned or pressed are subject to the applicable statutory state and local sales or use tax.  Sales to lessors of the items for use or consumption in making repairs or alterations to garments held for lease or rental which are being laundered, cleaned or pressed are exempt from sales or use tax.

(d)  When in addition to the services named in Paragraph (a) of this Rule, the businesses make retail sales of tangible personal property for which a separate charge is made, the sales are subject to the applicable statutory state and local sales tax.  Any charge for labor or services rendered in applying or installing the property are not subject to tax provided the charges are segregated from the charge for the tangible personal property sold on the invoice given to the customer at the time of the sale and in the vendor's records; otherwise, the total amount is subject to tax.

(e)  Retailers of the services named in Paragraph (a) of this Rule are liable for the applicable statutory state and local sales or use tax on the gross receipts derived from their services; however, the tax does not apply to gross receipts from the services performed for resale by retailers that pay the tax on their receipts from the services.

 

History Note:        Authority G.S. 105-164.4; 105-262;

Eff. February 1, 1976;

Amended Eff. August 1, 2009; April 1, 1997; October 1, 1993; June 1, 1992; October 1, 1991; August 1, 1988.