Does IN charge sales tax on labor? I have a window contractor charging me 7% SALES tax on labor and this is the first time I remember being taxed on labor. I live in Porter county and the contractor is from South Bend.
TIA
kup
Being they are repairing/replacing windows that are rotted I dont think they should be charging sales tax on the labor.
- Delivery and Installation Charges. Delivery and installation charges are now included in the definition of “gross retail income” and are therefore subject to tax. If an appliance store delivers a refrigerator to your home, the delivery charge is subject to tax. Likewise, if an automotive service shop installs a new stereo system in a vehicle that did not have a stereo, the installation charge is subject to tax. However, delivery and installation charges are not subject to tax when the charges are related to nontaxable items or exempt transactions.
- Repair and Replacement Charges. Unlike delivery and installation charges, repair and replacement charges are not taxable. Repair charges are charges to restore an item so that it can be used for its original purpose while replacement charges are charges for replacing an item that is part of another item of tangible personal property. For example, if an automotive service shop repairs your vehicle after an accident by replacing your fender, the fender is taxable, but the labor to repair the fender is not.
I found this on a lawyers web site and not the IN .gov site , still looking.
THANKS
kup