Okla. Admin. Code § 710:65-19-191

Current through Vol. 42, No. 7, December 16, 2024

Section 710:65-19-191 - Businesses engaged in the rental and/or laundering of linens, apparel, diapers, mats/rugs or other items

(a)Linen and uniform rental and cleaning services. Businesses which rent clean linens, apparel, diapers, rugs/mats or other items to consumers must obtain an Oklahoma sales tax permit and collect and remit state and any applicable local sales tax on the total charges billed to customers without any deduction for laundering, repairing, or cleaning services rendered in association with the rental of such items.

(1)Exempt purchases. Pursuant to its sales tax permit, property which is to be rented in addition to wrapping materials/garment bags in which such property is to be furnished to customers may be purchased exempt from sales tax. Likewise, items such as buttons and zippers used in the repair of rented apparel may also be purchased tax exempt.

(2)Taxable purchases. Materials, supplies, tools and equipment including soaps, detergents cleaning fluids, deodorants, bleaches, water, electricity, natural gas, washers, dryers, ironers, mangles and all other tangible personal property used and consumed to conduct their rental business are subject to sales tax when purchased.

(b)Laundries and dry cleaners. Amounts charged by establishments for the service of laundering or dry cleaning articles of clothing of their customers are not subject to sales tax. Laundries and dry cleaners pay sales/use tax on all items i.e., laundry equipment, cleaning chemicals, garment bags, etc., purchased or rented for use and consumption in the provision of their nontaxable service.

Okla. Admin. Code § 710:65-19-191

Amended by Oklahoma Register, Volume 36, Issue 22, August 1, 2019, eff. 8/11/2019