ARSD § 64:06:02:15 — Car washing

Gross receipts from the
business of car washing or providing car washing service are subject to sales
tax. A car wash is the consumer of the supplies and must pay sales tax or use
tax on the cost of the supplies in addition to reporting sales tax on gross
receipts from washing cars. If only a car washing service is provided and the
customer washes the car, the receipts for the use of the facility are subject
to sales tax in addition to the receipts from supplies dispensed to a customer
by a vending machine. Supplies which are sold to a customer through a vending
machine may be purchased exempt from sales tax by the car wash as a resale
item.