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Frequently Asked Questions About Repair Exemptions

1 - What about free installation?

If you sell a part, such as a muffler, and offer free installation, you must collect the tax on the full price of the muffler. The transaction is treated as if separate charges for labor and materials are being made and the labor charge is zero.

Links for Repair Exemptions FAQs
Business Tax Types
Sales and Use Tax
Filing Information
Tax Exemptions
Repair Labor Exemptions
Repair Exemptions FAQs
  3 - Can I avoid the tax on my purchases of consumables by including their cost in my parts charge and collecting tax from my customers?
  5 - If I give my parts supplier a resale certificate, isn't everything I buy from that supplier exempt?
  4 - How do I claim exemption on materials I will resell?
  1 - What about free installation?
  2 - What special rules apply to maintenance contracts?
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