Instead of being hired by the property owner (e.g., bank, realtor, or investor), a business (Business S) performing foreclosure cleanup services may act as a subcontractor to a business (Business C) that was hired by the property owner. Limited circumstances under which a wholesale sale may occur These cleanup jobs do not qualify for the exclusion for “janitorial services” because the services provided by these businesses are beyond the scope of cleaning and caretaking services ordinarily provided by commercial janitorial businesses. These businesses will also generally be subject to the retailing B&O tax.

These services are considered special cleanup jobs and may include, but are not limited to:īusinesses performing these types of cleanup services on foreclosed properties are generally making retail sales, and must collect and report retail sales tax. When a business contracts to perform cleanup on foreclosed properties for consumers (e.g., for banks, realtors, or investors), they often provide a combination of services for either an agreed-upon lump sum price or an amount to be based on the actual time spent cleaning up the property.

Foreclosed buildings