Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
490.0000 RETURNS, DEFECTS AND REPLACEMENTS—Regulation 1655
(2) Warranty Charges—When Includable In Tax Measure
490.0680 Service Policies. Where an appliance dealer sells a television service policy in the nature of an optional warranty (not mandatory upon purchaser), even if sold with the set, or as a "second-year" policy, it is a service contract not includable in taxable gross receipts. The dealer is regarded as the consumer of any parts used in performing this independent service. 5/21/54.