re: sales tax on labor, yay or nay?

quote:

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Worked for 10 years at a retailer that offered installation services and they were very "by the book" on accounting for everything. There's no sales tax on services, only on tangibile products. Anyone who adds sales tax to services is doing it to make an extra 9-10% profit on labor

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thats simply not true. Labor to fabricate or repair a movable is subject to sales tax.

For instance, a plumber repairing a pipe in a house is not taxable, because the house is an immovable. Since the house is an immovable, the way the law states is that if the item you are working on cannot be removed from the immovable without substantially damaging it, then it is considered immovable. Stuff like an AC unit, plumbing, electrical, etc all fall under immovable.

Lets say you are working on someones computer, that is taxable because the computer is considered a movable because you could remove the computer from the house and not damage it at all.

Here is a bulletin from the state that discusses the difference between a MRI unit installed permanently is not taxable to the customer and one that is portable is taxable.

LINK