New York cleaning services during certain construction are exempt.

An advisory opinion released by the Commissioner of Taxation and Finance states that while residential buildings are being constructed, any cleaning services used during this period are to be considered capital improvements, and thus exempt from tax. The advisory opinion did not discuss other situations such as a combination of cleaning and repair services. For the most part, services to real property not involving capital improvement are taxable. (Commissioner of Taxation and Finance, TSB-A-02(60)S)

Posted on February 15, 2003