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Frequently Asked Questions About Repair Exemptions

2 - What special rules apply to maintenance contracts?

The tax does not apply to the charge for a maintenance contract unless it must be purchased as a condition of the sale or lease of the property. If you are performing repairs under an optional maintenance contract, you must pay the tax on materials passing to customers unless a separate additional charge is made for them. If you are making repairs under a mandatory maintenance contract, or warranty included in the original selling price, you may claim the resale exclusion on purchases of materials passing to customers.

Links for Repair Exemptions FAQs
Business Tax Types
Sales and Use Tax
Tax Information
Frequently Asked Questions
Repair Exemptions FAQs
  1 - What about free installation?
  2 - What special rules apply to maintenance contracts?
  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?
  4 - How do I claim exemption on materials I will resell?
  5 - If I give my parts supplier a resale certificate, isn't everything I buy from that supplier exempt?
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