Repair, Maintenance, and Installation Services; and Other Repair Information

“Repair, maintenance, and installation services” includes the activities listed below and applies to tangible personal property, motor vehicles, certain digital property, and real property. The term does not include a service used to fulfill a real property contract. The included activities are:

• To keep or attempt to keep property or a motor vehicle in working order to avoid breakdown and prevent deterioration or repairs. Examples include to clean, wash, or polish property.
• To calibrate, refinish, restore, or attempt to calibrate, refinish, or restore property or a motor vehicle to proper working order or good condition. This activity may include replacing or putting together what is torn or broken.
• To troubleshoot, identify, or attempt to identify the source of a problem for the purpose of determining what is needed to restore property or a motor vehicle to proper working order or good condition. The term includes activities that may lead to the issuance of an inspection report.
• To install, apply, connect, adjust, or set into position tangible personal property or certain digital property. The term includes floor refinishing and the installation of carpet, flooring, floor coverings, windows, doors, cabinets, countertops, and other installations where the item being installed may replace a similar existing item. The replacement of more than one of a like-kind item, such as replacing one or more windows, is repair, maintenance, and installation services. The term does not include an installation defined and substantiated as a capital improvement. 
• To inspect or monitor property or install, apply, or connect tangible personal property or certain digital property on a motor vehicle or adjust a motor vehicle.

What Sales and Use Tax is Due?

The sales price of or the gross receipts derived from repair, maintenance, and installation services to real property, tangible personal property, motor vehicles, or certain digital property sold at retail and sourced to this State are subject to the general State, applicable local, and applicable transit rates of sales and use tax unless exempt by statute. This generally includes any tangible personal property or certain digital property that becomes a part of or is applied to a purchaser’s property. If the tax due is not paid at the time of purchase, the consumer use tax is applicable, at the same rate, to the purchase price of the repair, maintenance, and installation services sourced to the State. 

Note: The term "installation charges" is part of the definition of "sales price" and are subject to sales and use tax, no matter that the installation charges may be separately stated by the retailer.

How Do I find More Resources?

You may visit the following links to find more resources related to Repair, Maintenance, and Installation Services.

• Sales and Use Tax Bulletin 75, Repair, Maintenance, and Installation Services provides additional information on the following: 
  • Exemptions related to Repair, Maintenance, and Installation Services.
  • Examples of Taxable Repair, Maintenance, and Installation services for tangible personal property, a motor vehicle, certain digital property, and real property.
  • Guidance for Property Management Contracts.
• Sales and Use Tax Bulletin 72-6, Real Property Contracts provides information on how to treat a mixed transaction contract which includes both a real property contract for a capital improvement and repair, maintenance, and installation services for real property that are not related to the capital improvement.
• Refer to the Services to Real Property Taxability Chart to assist in the determination of the tax treatment of certain services to real property.
• Gross receipts derived from repair, maintenance, and installation services and the sales and use tax thereon are to be reported to the Department on Form E-500, Sales and Use Tax Return, or through the Department’s online filing and payment system.