Dry Cleaners, Laundries, Apparel and Linen Rental Businesses, and Other Similar Businesses

Every person engaged in the business of operating a dry cleaning, pressing, or hat-blocking establishment, a laundry, or any similar business; engaged in the business of renting clean linen towels or wearing apparel, or any similar business; or engaged in the business of soliciting cleaning, pressing, hat blocking, laundering or linen rental business for any of these businesses, is considered a retailer under Article 5 of Chapter 105 of the N.C. General Statutes. The general State and applicable local and transit rates of sales and use tax apply to the gross receipts derived by these retailers from services rendered in engaging in any of the occupations or businesses listed above.

The tax imposed by N.C. Gen. Stat. § 105-164.4(a)(4) does not apply to gross receipts derived from services performed for resale by a retailer that pays the tax on the total gross receipts derived from the services. Receipts derived from coin, token, or card operated washing machines, extractors, and dryers are exempt from sales and use tax.

Gross receipts derived from services rendered in engaging in any of the occupations or businesses listed above and the sales and use tax thereon are to be reported to the Department on Form E-500, Sales and Use Tax Return, or through the Department’s online filing and payment system.

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Technical Publication for Dry Cleaners, Laundries, Apparel and Linen Rental Businesses, and Other Similar Businesses

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