Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-05 - Sales and Use Tax Division
Chapter 1320-05-01 - State Sales and Use Tax Rules
Section 1320-05-01-.53 - LAUNDRIES, DRY CLEANERS, AND OTHER CLEANING TANGIBLE PERSONAL PROPERTY

(1) The washing, drying, or cleaning of any kind of tangible personal property and sales of any tangible personal property such as soap, bleaches, etc., and repair or alteration of any tangible personal property, for use and consumption, are subject to the Sales and Use Tax. This includes, but is not limited to such articles as clothing, furniture, rugs, draperies, jewelry, motor vehicles, etc. The receipts from coin-operated laundry and dry cleaning machines are not subject to tax if the customer performs all of the activities related to the handling of their clothing. If the dealer performs any of these services, the receipts are taxable.

(2) The cleaning of real property such as windows, walls, and wall to wall carpeting in buildings, is not subject to any Sales or Use Tax. Likewise; charges for storage of and insurance on laundry and cleaning, and dyeing, blocking, and pressing only, are not subject to the Sales or Use Tax, provided such charges are stated separately on a ticket, statement, or invoice given to the customer and are accounted for as such on the books and records of the dealer.

(3) Items of tangible personal property bought by laundries and dry cleaners which accompany tangible personal property washed or cleaned for customers, such as identification and packaging supplies, and items bought for resale, such as soap, bleach, and repair supplies, may be bought on a resale certificate without Sales or Use Tax. Items of tangible personal property which do not accompany tangible personal property washed or cleaned for customers, and all items used to wash or clean real property, such as equipment, public utilities, and cleaning agents, are subject to the Sales or Use Tax.