Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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460.0000 REIMBURSEMENT FOR SALES TAX—Regulation 1700

Annotation 460.0148.300

460.0148.300 Optional Maintenance Contracts—Tax Reimbursement. The taxpayer is the consumer of repair parts and materials furnished in performing the repairs pursuant to an optional maintenance contract and tax applies to the sale of such property to the repairer or to the use by the repairer of that property. Since no tax is due on the charge for an optional maintenance contract not involving software, amounts collected from customers as tax or tax reimbursement on those charges constitute excess tax reimbursement. This is true even if the amount collected is measured by the estimated cost of parts and materials to be used. 05/21/96.