61 Pa. Code § 60.1
Administrative supplies-
Boiler-A container which is used in the generation of steam from water or the production of hot water which is part of a heat distribution system. The term does not include, as part of the boiler, pipes used to circulate the steam or water, pumps, humidifiers, chimneys, utility lines into the boiler, water makeup systems or hot water heaters which are not part of the heat distribution system.
Building-A structure which usually has a roof and walls and is intended to be permanently affixed to real property. The term includes equipment which is an integral part of the structure such as centralheating and air conditioning units, electrical substations, fuel tanks, water tanks or chillers. For purposes of this section, an enclosed telephone booth is a building.
Building cleaning services-The performance of services which include the removal of dirt, dust, grease or grime on a building or inside of a building and the keeping of the building and its contents in a clean, neat, polished or orderly appearance. The term includes janitorial, maid or housekeeping services, office or building cleaning, window cleaning, floor waxing, chimney cleaning, acoustical tile cleaning, venetian blind cleaning, cleaning or degreasing service stations, or cleaning enclosed telephone booths.
Building maintenance services-The performance of routine and periodic services upon a building which keeps a building in a satisfactory operating condition. The term includes cleaning, oiling, greasing and replacing parts. The term does not include building repair services.
Building repair services-Services to a building which do not qualify as a building maintenance service or building cleaning service.
Employe-A person who is paid for his work or services by a vendor, including persons on the payroll or independent contractors.
Employe costs-Payments made or withheld by a vendor to an employe, including wages, salaries, bonuses, commissions, employment benefits, expense reimbursements, payroll and withholding taxes, employer paid Social Security Tax or Federal and Pennsylvania unemployment taxes. The term does not include employe recruiting, training, liability insurance, bonding expenses and other costs.
Employment benefits-Paid leave such as vacation; sick leave; health care such as hospitalization, medical, dental or eye care; retirement benefits; or worker's compensation.
Expense reimbursement-Meals, lodging, mileage or similar expenses incurred by the employe on behalf of the vendor for which the employe is reimbursed.
Furnace-An enclosed structure which produces heat and is part of a building heating system such as a central furnace; coal, oil or gas furnace; heat pump; or wood stove. The term does not include, as part of a furnace, the duct work, humidifier, chimney, air cleaner, utility lines into the furnace or similar items. The term does not include radiant heating systems, electric baseboard heating systems, portable heaters, fireplaces or similar systems which are not enclosed structures.
Gross fee-The total amount charged by the vendor excluding sales tax.
Interior office building cleaning services-Building cleaning services which are performed on the interior of an office building.
Office building-A building which is used predominantly for the transaction of business or the performance of a business service. The term includes manufacturing facilities, processing facilities, research and development facilities, public utility facilities, warehouses, laboratories, hospitals, libraries, retail stores, banks, stock brokerages, service stations, repair garages, parking garages, movie theaters, race tracks, bars, restaurants and hotels. A building is predominantly used for the transaction of business or the performance of a business service if more than 50% of the total square footage of the building is actually used for these purposes. The term does not include apartment houses, retirement homes, condominiums and private residences unless the building is predominantly used for the transaction of business or the performance of a business service.
Service fee-Gross fees less separately stated employe costs.
Example: An attorney practices law from an office located in a private residence. The office, which has its own entrance and is a separate area in the private residence, comprises less than 50% of the total square footage of the private residence. The attorney contracts with a cleaning service to clean only the office portion of the private residence. Because the private residence is not predominantly used as an office building, employe costs related to the building cleaning services, even if separately stated, are subject to sales tax.
Example: In 1994, "A," a sole proprietor, reported gross sales of $50,000 and a net profit of $20,000. The amount of "A's" gross sales which is subject to tax is $30,000 or 60%. During 1995, "A" shall collect tax on 60% of the amount invoiced for interior office building cleaning services.
Example: An apartment complex is comprised of 100 separate units and the apartment owner provides general maintenance and cleaning outside the building and the hallways inside the building. The providing of these maintenance and cleaning services is not taxable because the services are incidental to the providing of an apartment.
Example: The lease of offices within a building includes the providing of janitorial services for each of the offices. Since the janitorial services are not incidental to the lease of the offices, the janitorial services are taxable and if the services are not separately stated, the entire lease amount is taxable.
| Gross Fee | $xxxxx | $xxxxx |
| Less: Employe Costs | -xxxxx | |
| Taxable Service Fee | xxxxx | |
| PA Sales Tax Rate | xxxxx | |
| PA Sales Tax Due | $xxxxx | xxxxx |
| Total Invoice Amount | $xxxxx |
61 Pa. Code § 60.1