The following definitions apply to the building cleaning industry. 

Buildings and Structures

A building or structure is built on land and is intended to be permanent. It also includes improvements or fixtures incorporated into the building or structure that both:

• Are intended to be of permanent benefit given its present use
• Cannot be removed without substantial damage to the building or structure

Maintenance

Maintenance means keeping an item in good working order or ensuring it keeps operating safely and efficiently.

Repair

Repair means to restore an item to its original purpose.

Building cleaning and maintenance includes both interior and exterior cleaning of commercial and residential buildings, homes, and apartments. It does not include repairs to buildings.

Note: Contracts that include taxable and nontaxable services are taxed on the full amount unless the nontaxable services are separately stated.

Starting July 1, 2026, certain charges related to water mitigation services are not taxable.

Water mitigation is the process of stopping the spread of water damage from an event, such as a flood or leak. 

Water mitigation may be considered taxable maintenance or nontaxable repair:

• Maintenance is keeping the area in its existing state, to preserve from failure or decline, or prevent from damage. 
• Repair restores or replaces what was damaged or broken, restoring the area back to its original state. This includes fixing, rebuilding, reconstructing, or renovating the damage that was caused. See Contractors and Other Property Installers.

Taxable Maintenance or Nontaxable Repair

Determining whether water mitigation services are taxable maintenance or nontaxable repair will depend on the following factors:

Taxable Water Mitigation Services Examples

Examples of taxable water mitigation services (taxable maintenance), include but are not limited to:

• Removing water without any additional services
• Removing water and bringing in fans, without any additional services
• Pulling baseboards, trim vanities, etc. to allow access for drying, and putting those same materials back after drying
• Pulling back carpeting and carpet padding to allow for drying, and putting the same materials back after drying
• Using air movers and dehumidifiers to bring down the moisture levels to normal and drying out structures
• Applying anti-microbial agents or disinfectants to affected areas
• Carpet cleaning – floor cleaning, vacuuming, waxing
• Ceiling tile cleaning
• HEPA vacuuming

Exempt Water Mitigation Services Examples

Examples of exempt water mitigation services (nontaxable repair), include but are not limited to:

• Removing water and making improvements to real property
• Bringing in fans to dry out an area, while also making improvements to real property
• Installing new flooring, carpeting, drywall, or insulation due to water damage
• Removing baseboards, trim, vanities, etc. and replacing them with brand new materials after drying 
• Tearing out and disposing of wet dry wall and insulation 
• Removing and disposing of wet carpeting, carpet pads, flooring 
• Painting walls

Billing for Water Mitigation Services

There must be clear documentation to support what was done on the invoice.

Sales tax applies to some types of service contracts.

Mechanical Systems Cleaning Contracts

Contracts to clean mechanical systems, such as elevators and HVAC systems, are taxable building cleaning. You may purchase some items used to provide these services exempt from sales tax. See Exempt Purchases.

Repairing Mechanical Systems Contracts

Contracts to repair mechanical systems, such as elevators and HVAC systems, are not taxable. Repair services must be separately stated.

Repair includes services to:

• Restore an item that was broken, worn, damaged, defective, or malfunctioning, to working order or operating condition
• Sustain or support safe, efficient, and continuous operations
• Prevent decline, failure, lapse, or deterioration

Contractors owe sales or use tax on the parts used for contracted repairs. 

Home Health Care Service Contracts 

Home health care services that provide a combination of medical care, personal care, laundry, and cleaning services for one charge are not taxable. 

If a third party provides the residential cleaning services, the home health care provider cannot purchase those services exempt for resale.

Lighting Maintenance

Lighting maintenance, such as bulb and fuse replacement, is taxable. Ballast replacement is only taxable when it is plugged in. When ballasts are hard wired, maintenance to replace them is not taxable because it is an improvement to real property. 

Combination Contracts

Contracts to construct, repair, alter, or improve real property are not taxable. The contractor must pay sales or use tax on any materials, supplies, equipment, or taxable services used to complete the construction contract. See Contractors and Other Property Installers. 

A lump sum contract that includes items listed under “building cleaning and maintenance,” together with construction, alteration, or improvements to real property is considered a construction contract when 50% or more of the total cost of the contract is for improvement of real property.

Example 1

Fire damage requires you to wash walls, clean carpets and Venetian blinds, paint all rooms, and reconstruct several walls. Since 50% or more of the cost of the contract is for improving real property, the contract is not taxable.

Example 2

Fire damage requires you to wash walls, clean carpets and Venetian blinds, and paint rooms. The painting is not taxable if separately stated. Cleaning carpets, Venetian blinds, and washing walls are taxable. If the customer is billed a lump-sum amount for painting and the taxable services, the entire amount is taxable, since more than 50% of the contract is for taxable services.   

Junk removal is a taxable service. Junk removal service providers pick up and remove unwanted items in buildings.

Taxable Junk Removal Services

The following junk removal services are taxable:

• Removal of household contents or discarded items from buildings, including garages, abandoned buildings and storage units
• Cleaning and removal of household waste
• Removal of twigs and grass clippings
• Tree, bush, and stump removal

For examples of other taxable services, see the Taxable Services section of Building Cleaning and Maintenance.

Nontaxable Charges

The following are not subject to sales tax:

• Waste management services provided by the city sanitation department, solid waste management service providers, or the waste control department (may be subject to Solid Waste Management Tax)
• Curbside pickup of items placed by the property owner, including yard waste (may be subject to Solid Waste Management Tax)
• Removal of appliances when being replaced, if removal service is optional
• Charges for the removal of dumpsters or dumpster bags

Note: Nontaxable charges must be listed separately on the invoice.

Examples

Example 1

A bank hires a junk removal service provider to clean out a foreclosed residential property. The service provider removes abandoned household contents and cleans out debris. The charges are taxable.

Example 2

A contractor hires a demolition company to tear down two office buildings so an apartment building can be built on the property. The contractor hires a separate company to remove the demolition debris. The removal of the demolition debris is not taxable. The debris removal is not considered part of building and residential cleaning as long as no building remains.

Items that are consumed while providing a taxable service and separate detachable units can be purchased, exempt from sales tax. 

Consumable Items

Items used or consumed in providing taxable building cleaning and maintenance, disinfecting, and exterminating services are not taxable. You must use the items directly in providing the taxable service to qualify for the exemption.

Examples include:

• Chemicals to treat waste generated from providing the taxable service
• Cleaners, disinfectants, degreasers
• Deodorizers
• Disposable rags, paper towels
• Exterminating chemicals
• Furnace filters
• Garbage bags
• Mothballs
• Lubricants and antifreeze for vehicles used while directly providing taxable services (i.e. furnace cleaning machines)
• Pesticides
• Soaps, detergents, waxes, shampoos
• Swimming pool cleaning chemicals 
• Traps (one-time use)
• Window cleaner

To purchase these materials exempt, give your vendor a completed Form ST3, Certificate of Exemption, and select the Resale exemption.

Separate Detachable Units

Separate detachable units used to provide taxable services are exempt. Separate detachable units do not include the basic machine or any components included in the original purchase price of a machine. To qualify for the exemption, the item must meet all three requirements:

• It must be used to provide a direct effect for a taxable service.
• It must be an accessory or other item that attaches to a machine while in use.
• Its ordinary useful life must be less than 12 months when used continuously in normal use.

Examples of separate detachable units:

•  Abrasive and polishing belts
• Disposable vacuum bags, brushes, and filters (when purchased separately from the vacuum cleaner)
• Mopheads (when purchased separately from the handle)
• Polishing strips and buffers 

Items you use to operate your business are taxable unless an exemption applies. Several services are also taxable. See Taxable Sales and Taxable Services.

Purchases of equipment and tools are taxable. Examples include:

• Air movers
• Air scrubbers and filtration devices
• Belts, bolts, and nuts for equipment
• Containment barriers/plastic sheeting
• Dehumidifiers
• Dryers
• Hand tools (hammers, pliers, screwdrivers)
• Infrared cameras
• Moisture meters
• Personal protective equipment (PPE)
• Repair parts
• Sprayers
• Thermal imaging cameras
• Vacuum cleaners
• Vacuum cleaner lights
• Wet-Dry vacuums 

Use Tax

If you buy equipment, supplies, or other taxable items for your business and the seller does not charge Minnesota sales tax, you owe use tax on the cost of the items. If your business is located in an area with a local tax, you may also owe local use tax. 

See Use Tax for Businesses and Local Sales and Use Taxes.

The legal references and resources related to the building cleaning and maintenance industry are listed.

Minnesota Statutes

• 297A.61, subd. 3(g)(6)(iii), Sale and purchase
• 297A.68, subd. 3, Materials used in providing certain taxable services
• 297A.61, subd. 58, Real property

Revenue Notices

• 00-03, Exemptions: Materials Used or Consumed in Providing Taxable Services
• 02-22, Building Cleaning and Maintenance – Swimming Pools
• 09-05, Technical Corrections to Revenue Notices #02-22
• 12-02, Home Health Care Services – Combination Contracts

Publications

• Agricultural and Farming
• Contractors and Other Property Installers
• Isolated and Occasional Sales
• Laundry and Cleaning Services
• Local Sales and Use Tax
• Sales and Use Tax Business Guide
• Use Tax for Businesses