426.1 The sale of or charge for the service of carpet and upholstery cleaning, including the cleaning or dyeing of used rugs, carpets, or upholstery, or for rug repair is subject to sales tax.

426.2 Persons operating places of business for the purpose of carpet and upholstery cleaning must report and pay the sales tax measured by the gross proceeds derived from these services.

426.3 Materials such as thread and yarn which become an integral part of the rug, carpet, or upholstery subject to cleaning are exempt from tax when sold to the carpet and upholstery cleaners as sales for resale.

426.4 Materials such as detergents, cleaning fluids, and other consumable supplies used in connection with the services of carpet and upholstery cleaning are subject to the sales tax, and the tax should be paid by the cleaners purchasing such items. If the tax was not paid at the time of purchase of the items, those purchases must be reported to the District and a use tax paid on the amount of the purchases.

426.5 For purposes of this section, “carpet and upholstery cleaning” includes, but is not limited to:

(a) Dry cleaning services for rugs;

(b) Carpet, rug, or upholstery cleaning, dying, and repairing services, including carpet cleaning and repairing performed in commercial or residential structures;

(c) Treating or applying protective chemicals to carpet, upholstery, or rugs; and

(d) Binding and serging of area rugs.

SOURCE: Final Rulemaking published at 62 DCR 4890 (April 17, 2015).