Ruling 89-264, Installation/Repairs

The labor charges by plumbing, heating and cooling contractors for installations of air conditioning, water, heating, ventilation and exhaust systems, as well as sinks, toilets, bathtubs, dishwashers and garbage disposals provided to new construction or existing one, two or three family exclusively residential owner-occupied homes are not taxable. Labor charges by contractors for installations of air conditioning, water, heating, ventilation and exhaust systems as well as sinks, toilets, bathtubs, dishwashers and garbage disposals rendered to existing commercial, industrial or income-producing real property are subject to sales and use tax. Repairs to items such as air conditioning units, furnaces, oil burners, heat pumps, water heaters, water pumps, water conditioners, water coolers, exhaust fans, garbage disposals and dishwashers performed in residential or commercial realty are subject to sales and use tax.

Repairs to sinks, toilets, bathtubs and pipes which are not part of the units stated above are considered to be plumbing services to real property and are not taxable when rendered to existing one, two or three family exclusively residential owner-occupied homes. However, the repairs are taxable when provided to existing commercial, industrial or income-producing property.

LEGAL DIVISION

December 7, 1989