Overview of Arkansas Taxation on Cleaning and Janitorial Services
The Arkansas Revenue Legal Counsel has issued a legal opinion stipulating that sales tax is levied on the service of providing cleaning or janitorial work.
A taxpayer asked about the taxability of cleaning services in conjunction with the rental of a condo to overnight guests.
Applicable Legal Provisions
Under Ark. Code Ann. §26-52-301(3)(D)(i)(b):
- Arkansas state and local sales tax is levied on the service of providing cleaning and janitorial work.
Pursuant to Ark. Regs. §GR-9.4(A):
- Cleaning services are defined as services to rid the interior or exterior of any building, dwelling, or other structure of dirt, impurities, or extraneous matter.
These services are generally subject to sales tax regardless of the nature of the customer for whom those services are provided.
Key Compliance Details
- There is no requirement that the provider of the cleaning and janitorial work be an accredited/registered janitorial service company.
- The provider of cleaning and janitorial services is required by law to:
- Collect state and local sales tax from the purchaser of these services.
- Remit the tax to the Arkansas Department of Finance and Administration.
Important: This obligation applies to all cleaning service providers operating within Arkansas.
Frequently Asked Questions
Are all cleaning and janitorial services in Arkansas subject to sales tax?
Yes. Under Arkansas law, cleaning and janitorial services, whether for residential, commercial, or rental properties, are generally subject to both state and local sales tax regardless of the customer type.
Do cleaning service providers need to be registered janitorial businesses to be taxed?
No. There is no requirement that the provider be a registered janitorial company. Any individual or business offering taxable cleaning or janitorial services must comply with tax collection and remittance rules.
What types of cleaning services are considered taxable?
Taxable cleaning services include both interior and exterior cleaning of any building, dwelling, or structure to remove dirt, impurities, or other matter, as defined in Ark. Regs. §GR-9.4(A).
Do I need to collect sales tax if I clean vacation rental properties?
Yes. If you provide cleaning services for vacation or overnight rental properties (e.g., condos), those services are subject to Arkansas sales tax and must be reported and remitted accordingly.
Who is responsible for paying the sales tax on cleaning services?
The service provider is responsible for collecting the applicable state and local sales tax from the purchaser and remitting it to the Arkansas Department of Finance and Administration.