Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
490.0000 RETURNS, DEFECTS AND REPLACEMENTS—Regulation 1655
(1) In General
490.0510 Automobile Warranty. The unexpired portion of a new car warranty, which a second retail purchaser of the car receives by paying a $25 transfer fee and which is subject to a $25 deductible clause, is a continuation of the original mandatory warranty. Amounts billed to the manufacturer for parts and the $25 transfer fee are not subject to sales or use tax. The pro rata portion of the $25 deductible charge allocable to parts is subject to sales tax. 10/22/71.