The state tax office has released new rules about how laundry businesses must pay taxes.  

It focuses on the business and occupation tax, also called B&O tax, and on retail sales tax.  

Eight types of services are covered. These include changing clothes, cleaning them, and supplying linens.  

Most of these services fall under the retailing category for B&O tax.  

Customers must also pay a separate sales tax when they buy the service.

The guidance also talks about wholesale deals.  

If a laundry shop sells to another business for resale, different rules apply.  

Other activities are mentioned too.  

Picking up and dropping off clothes, or selling items from a vending machine, have their own tax rules.  

The main point is that laundry businesses need to know which taxes they owe for each service.  

Keeping records and following the new rules can help avoid penalties.


# New Tax Rules for Laundry Businesses

The state tax office has issued updated guidance on how laundry businesses must handle taxes, covering both the **Business and Occupation (B&O) tax** and **retail sales tax**.

## Key Points

- **Eight Service Categories**  
  The guidance lists eight types of services, including:
  - Changing clothes
  - Cleaning clothes
  - Supplying linens

- **B&O Tax Classification**  
  Most of these services fall under the *retail* category for B&O tax purposes.

- **Separate Sales Tax**  
  Customers must pay an additional sales tax when purchasing a service.

## Special Cases

- **Wholesale Transactions**  
  If a laundry shop sells to another business for resale, different rules apply.

- **Other Activities**  
  - Picking up and dropping off clothes
  - Selling items from a vending machine  
  Each of these has its own tax rules.

## Practical Takeaway

Laundry businesses need to:
1. Identify which taxes apply to each service.
2. Keep accurate records.
3. Follow the new rules closely to avoid penalties.



Laundry Service Taxes Explained Simply

Key Points

Special Cases

Practical Takeaway

Actions