If you repair personal property, you DO NOT have to pay the tax on purchases of:
- Parts you will resell over-the-counter
- Parts installed in customer property under mandatory maintenance contracts; or
- Parts that will be installed on property you are repairing for which a separate charge will be made.
You DO have to pay the tax on:
- Purchases of parts and supplies used in lump-sum billing; and
- Items you use yourself such as tools and stationery.
- Materials and supplies consumed in repairing property but which do not become a part of the property, such as soaps, rags, masking tape, and sandpaper
For additional information, feel free to view the Business Tax Tip #7 and Business Tax Tip #8.