Ruling 90-78
Crane and Rigging Services
FACTS:
Company's transportation, crane and rigging services include the delivery, unloading, setting in place and/or removal of structural components for industrial, commercial, or income-producing real property. For example, Company will provide a crane and operator to place an air conditioning compressor or other structural building component (i.e., trusses, headers, etc.) onto industrial, commercial, or income-producing real property. Company does not provide any connecting work or disconnecting work related to such structural components. Removal of such equipment by Company may be done to facilitate repair of the equipment by a third party. Company does not perform any repair services to the equipment.
Company also performs services for the manufacturers of relocatable modular office buildings. The manufacturer either leases or sells the units to the property owner. Company offloads the modular units from the manufacturer's trucks onto the foundation or piers with a crane and, when necessary, also loads them onto the manufacturer's trucks for transportation away from a site.
RULING:
Section 12-407(8)(e), as amended by Public Act 89-123, effective October 1, 1989 provides that the term "sales price" does not include the amount charged for labor rendered in installing or applying the property sold, provided such charge is separately stated and exclusive of such charge for any service rendered within the purview of subparagraph (I) of subdivision (i) of subsection (2) of Section 12-407 (i.e. services to industrial, commercial or income-producing property).
Company does not provide services related to connecting equipment or structural components which would cause it to become a part of the building or to disconnecting them. Therefore, Company's transportation, crane and rigging services are not subject to sales and use tax as a service to industrial, commercial or income-producing real property under Section 12-407(2)(i)(I) or as a repair service to tangible personal property under Section 12-407(2)(i)(Q) when the component if being removed by Company in connection with repair services to be performed by a third party.
LEGAL DIVISION
December 20, 1990