Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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S

515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501

Annotation 515.0016.200

(a) IN GENERAL—SERVICE DISTINGUISHED FROM SALE

515.0016.200 Servicing Medical Equipment. A medical equipment company has a contract with a hospital to store, clean, maintain, inspect, deliver, and retrieve medical equipment owned by the hospital. There is no transfer of tangible personal property to the hospital when providing such services. The company does, however, install parts and commode buckets replacements which are provided by the hospital.

Since the medical equipment company did not provide any tangible personal property, it is providing a nontaxable service to the hospital provided none of its installation constitutes fabrication (e.g., putting together new property.) 2/5/96.