Nebraska – Taxability of Building Cleaning and Maintenance Services

SALT Report 2029 – The Nebraska Department of Revenue has updated its building cleaning and maintenance services information tax guide. Since 2002 these services have been subject to state and local tax and retailers who provide any of the listed services must hold a sales and use tax permit.

The list of taxable building cleaning and maintenance services includes interior and exterior cleaning of commercial and residential buildings, homes, apartments, outbuildings, and agricultural buildings. However, the following services have been added to the list of services that are not considered building cleaning and maintenance services and are not taxable:

  • Insulation or asbestos removal,
  • Cleaning underground tanks,
  • Outdoor swimming pool and sauna cleaning,
  • Septic tank cleaning,
  • Maintenance of outdoor surface parking lots and outdoor open mall areas,
  • Snow plowing and removal, and
  • Lawn mowing and yard cleanup

The guide has updated its position on property management companies to note that they are considered the consumers of building cleaning and maintenance services when these services are contracted out to third parties. Therefore, the total amount paid by the management company is taxable; however, the amount charged by the management company to the property owner is not taxable.

Building cleaning and maintenance services are not taxable if they are performed by an employee for his/her employer if the services are within the scope of the employee’s duties, and the employee is paid a wage for these services.

For Further Information:

Nebraska Department of Revenue – Information Guide 6-401-2002