Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
315.0000 INSTALLING, REPAIRING, RECONDITIONING IN GENERAL—Regulation 1546
(a) IN GENERAL
315.0158 Mandatory vs. Optional Maintenance Contract. If a seller/lessor is willing to sell or lease equipment without also requiring the purchase of a maintenance contract, a maintenance contract purchased in connection with the purchase of that equipment will be regarded as an "optional maintenance agreement." The fact that the customer's "request for proposal" required the bid to include a maintenance contract will not alter the optional status of the contract. Therefore, as long as the charge for the maintenance contract is separately stated, and the purchaser/lessee could have purchased or leased the property, without also purchasing the maintenance contract, the sales price of the maintenance contract is not subject to tax. 10/30/86.