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This Ruling has been obsoleted by IP 99(19) and AN 2000(8)

Ruling 89-142

Repairs / Water Systems


Labor charges for the installation of water systems, such as wells, water heaters, water conditioners and water coolers are not taxable when the services are rendered to new construction or existing one, two or three family exclusively residential, owner-occupied real property. Labor charges for the installation of water systems provided to existing commercial, industrial or income-producing real property are subject to sales and use tax.

The installation of water systems performed on existing commercial, industrial or income-producing property would be an example of a renovation.

Labor charges for the replacement or repair to part of a water system rendered to residential real estate and/or commercial real estate are subject to sales and use tax.

LEGAL DIVISION

October 12, 1989