The Arkansas Department of Finance and Administration ruled that the entire charge for cleaning motor vehicles is taxable if any of the labor is performed by the service provider.
Arkansas taxes the service of cleaning motor vehicles. However, there is an exemption for coin-operated car washes. For the exemption to apply, the labor of washing the exterior of the car must be performed only by the customer or by mechanical equipment.
The taxpayer charged a nominal fee for an attendant to spray a cleaning solution on the cars to help remove built-up debris. Mechanical equipment provided the rest of the cleaning service. The Department ruled that the entire price for the car wash - not just the nominal fee - was taxable.