Car Washes Taxable in North Carolina

Wednesday, March 28th, 2018

Image of a car wash.
North Carolina

The North Carolina Department of Revenue (DOR) recently ruled that car washes that involve any activity by an employee are considered taxable repair, maintenance, and installation services.

The car wash provider operated a mechanical car wash. As part of the car washing service, an employee directed customers into the mechanical wash, placed a cover over rear windshield wipers, and for a period of less than fifteen seconds applied soap to car bumpers, and pressure washed the tires.

North Carolina taxes repair, maintenance, and installation services. This includes the cleaning, washing, and polishing of motor vehicles. However, North Carolina does not tax self-service car washes. The DOR ruled that the car wash was a taxable maintenance service and not a self-service car wash because self-service car washes do not include any activity performed by an employee to refinish, restore, clean, or wash customer cars. Washes North Carolina

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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

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