When parking facilities provide both residential and nonresidential parking services, the operator or parking vendor must keep detailed records for the residential parking sales. This includes the name and address of the resident and the amount of the sale.

For more information, see Revenue Notice 16-08, Parking Services.

Nontaxable storage charges include storage of motor vehicles that are secured by a fence or wall and are contracted for a longer period of time (winter storage) or for several months.

Taxable charges include storing vehicles on an open lot or area where the owner has access to the vehicle at any time or there is no contract for a specified period of storage.

For more information, see Revenue Notice 16-08, Parking Services.

When parking and transportation services are sold together for one fee, the entire sale is taxable even though transportation by itself is a nontaxable service. When sold together, the transportation service is taxable because it is necessary to complete the sale of the parking service.

For the transportation service to remain nontaxable, the vendor must give customers the option of not taking the transportation service and state the charges separately on the invoice.

Stating that the charge is for 50% parking and 50% transportation on the invoice or a sign is not sufficient to relieve vendors their responsibility to charge and remit tax on the total price.

For more information, see Revenue Notice 00-04, Sales Price – Mixed Transactions.

When a business provides customers with validated parking under which the business pays for part of or the total charge for the customer’s parking, the total amount paid for the parking services is taxable.

This means that you must charge sales tax on the amount paid by the business and any amount paid by the customer.

If you offer other services, they may be taxable.

Other taxable services or sales include:

• Car or motor vehicle washing.
• Motor vehicle towing.
• Sales from vending machines you operate. Food sold through vending machines is taxable. See Vending Machines and Other Coin-Operated Devices.
• Sales or lease of equipment or other items used in your business, unless an exemption applies. For more information, see Isolated and Occasional Sales.

When you sell taxable parking, you must charge the state general sales tax and any local sales taxes that apply. Calculate tax based on the total price of the parking charges, including any administrative charges.

You may include sales tax in the parking price, and you must notify customers that sales tax is included in the price. Invoices, signs, or contracts for parking services should separately state the amount of sales tax or contain the words “tax included.”

Building cleaning services are taxable. Ramps and parking garages are considered buildings. Outdoor lots are not considered buildings.

Examples of taxable building cleaning:

• Cleaning services, such as sweeping and washing
• Disinfecting, exterminating, and pest control services
• Lighting maintenance, such as bulb and fuse replacement
• Removing graffiti
• Removing junk
• Removing leaves and trash

Note: Charges for removing snow are not taxable.

Whoever installs equipment and materials into real property is the end user and must pay sales and use tax. A sign anchored in the ground or attached to a building or pole is considered real property. A sign attached to a building is part of the building.

When installing repair parts into real property, they are taxable to the person making the repairs.

Inputs for parking services are taxable. However, some purchases are not taxable.

Examples of services and purchases:

• Accounting and legal services
• Advertising time or placement in media
• Cleaning of surface parking lots
• Painting of stripes in parking lots or ramps
• Security by off duty peace officer within the district they normally serve
• Snow removal
• Uniforms