Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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I

315.0000 INSTALLING, REPAIRING, RECONDITIONING IN GENERAL—Regulation 1546

Annotation 315.0206

(a) IN GENERAL

315.0206 Travel or Mileage Fees. Separately stated travel or mileage fees in connection with a repair of tangible personal property are not includable in the measure of tax if the vendor does not furnish any tangible personal property or if the tangible personal property furnished by the repairer is as a "consumer" pursuant to Regulation 1546(b).

If the repairer also furnishes parts for which it is the retailer under Regulation 1546, the issue of whether part or all of the charge is includable in the measure of tax depends on whether the charge is related to the parts, labor, or both. If the charge is related solely to parts, it is includable in the measure; if related solely to labor, it is excluded; if it is related to both, it should be prorated in the respective ratio of the charges for parts and labor.

When a contract which provides for a "mileage and truck charge" for having trucks stocked with all necessary tools and common material to complete a service call without making a trip to a supply shop, saving additional labor charges, and for small supplies, the charge is an overhead charge related to both labor and parts and should be prorated. Part of such a charge is for stocking parts on the truck.

On the other hand, when a firm which makes a "service charge" in connection with dispatching a truck to repair, changes or replaces a tire as needed, the charge is not related to the sale of tangible personal property when circumstances dictate that a tire be replaced and such a charge is not added when the customer brings in a vehicle for a tire replacement. 9/17/82; 1/27/95.