ST 2003- 12 - H.B. 95 - Laundry and Dry Cleaning
Service - July 31, 2003
Am. Sub. H.B. 95 of the 125th Ohio General
Assembly included several expansions to the sales tax base.
One such expansion is found in an amendment to Ohio Revised
Code ("R.C.") section 5739.01(B)(3)(d). On and after August
1, 2003, that section will impose tax on laundry and dry
cleaning services. Furthermore, R.C. 5739.01(BB) was amended
"Laundry and dry cleaning services" means removing soil
or dirt from towels, linens, articles of clothing, or
other fabric items that belong to others and supplying
towels, linens, articles of clothing, or other fabric
items. "Laundry and dry cleaning services" does not
include the provision of self-service facilities for use
by customers to remove soil or dirt from towels, linens,
articles of clothing or other fabric items.
The purpose of this release is to provide information to
vendors and consumers to assist them in meeting their
obligations under the tax.
- I provide uniforms to businesses. Before August 1, 2003,
this was a taxable "industrial laundry cleaning service."
Does the change in the statute exempt my sales?
No. The amendments to R.C. 5739.01(B)(3)(d) and
5739.01(BB) expand the scope of transactions to which the
tax applies. A uniform business is "supplying … articles
of clothing" to its customers, which is a taxable laundry
and dry cleaning service.
- I am a dry cleaner. What type of license do I need to
comply with the new law?
Dry cleaners in this state will need a vendor’s license
for every fixed location where they provide laundry and
dry cleaning services. Vendor’s licenses must be obtained
from the county auditor in the county where the place of
business is located. The application form for a vendor’s
license is available on the website of the Ohio
Department of Taxation: http://tax.ohio.gov/ under the "FORMS" tab.
Out-of-state providers of laundry or dry cleaning
services that provide pickup and delivery of items in
this state to be cleaned is required to collect Ohio tax
and must obtain a seller’s use tax registration from the
Department of Taxation. The application for a seller’s
use tax account is also available on the Department of
- I already have a vendor’s license for my dry cleaning
shop because I perform alterations and sell some cleaning
supplies. Do I need another vendor’s license to provide
laundry and dry cleaning services?
No. You should report your sales of laundry and dry
cleaning services and the tax collected on those sales on
your existing vendor’s license.
- I provide a service where I pick up clothing from my
customers to be cleaned and then deliver the cleaned clothing
to the customer. I charge for pick-up and delivery separately
from the charge for cleaning. Are my pick-up and delivery
Yes. Under R.C. 5739.01(H)(1)(a)(iii) and (iv), amounts
you charge your customers for pick-up and delivery are
part of the taxable price of the laundry and dry cleaning
- Are charges for the application of stain repellants or
waterproofing in conjunction with dry cleaning taxable?
Yes. However, if no laundry or dry cleaning service is
provided with the application of stain repellants or
waterproofing, the service would not be taxable.
- What if my customer claims an exemption from the tax?
If a customer claims an exemption from the tax, the
customer must provide a properly completed exemption
certificate. The exemption certificate relieves the
seller of the obligation to collect the tax. The seller
needs to retain the exemption certificate in its records
in case of audit. Exemption certificate forms are
available on the Department of Taxation website.
- A hotel provides laundry service to its guests. My
business contracts with the hotel to provide the cleaning. I
bill the hotel for the cleaning and the hotel bills the
guests. Are these types of sales to the hotel taxable?
No. In this situation the hotel should provide the
cleaner an exemption certificate claiming that its
purchases are for resale. The hotel should then charge
tax on the amount it bills to the guest for the laundry
- A local cleaning company engages in remediation of flood
damage for a business or home. As part of that service, the
cleaning company sends curtains to my dry cleaning
establishment. I clean the curtains and bill the cleaning
company. The cleaning company bills the business or homeowner
for the curtain cleaning as part of the remediation service.
Are my charges to the cleaning company taxable?
No. The cleaning company should provide the cleaner an
exemption certificate claiming that the purchase is for
resale. The cleaning company should itemize the charge
for its remediation service, which is a building
maintenance and janitorial service, separately from the
laundry and dry cleaning service on its bill to its
customer. Regardless how billed, the tax is imposed on
both types of services.
- As a dry cleaner, do I have any claim of exemption on
equipment or supplies I purchase for use in providing a
laundry and dry cleaning service?
R.C. 5739.02(B)(43)(m) provides an exemption to persons that
provide services under R.C. 5739.01(B)(3), including laundry
and dry cleaning services, for purchases of any tangible
personal property that "is or is to be permanently
transferred to the consumer of the service as an integral
part of the performance of the service." This would include
starches, stain repellants and waterproofing products that
are applied to and remain in the fabric of the items being
treated, as part of a laundry and dry cleaning service [see
question 5]. Exemption can also be claimed on such items as
hangers, plastic bags and other materials in which
permanently transferred to the customer with the cleaned
No exemption can be claimed on equipment or supplies used to
perform laundry and dry cleaning services that are not
permanently transferred to the customer as part of the
performance of the service. This would include all machinery
used to clean or press fabric items and any fluids, stain
removers, soaps or other supplies that are consumed in the
If you have questions regarding any matter covered in this
release, please call 1-888-405-4039 (Ohio Relay Service for
the Speech or Hearing Impaired: 1-800-750-0750).