Ruling 90-13

Installation and Repairs Services
Condominiums

This ruling has been obsoleted in part by AN 94(4)

Labor charges for painting services or carpentry services as well as electrical or plumbing services such as the installation of a light fixture, the installation of a water heater and the replacement of a leaky faucet rendered directly to the residents of "Condo Village" within their individually owned units, are not taxable when the units are owner occupied. The sales tax would apply to said services provided to rented condominiums. If a condominium association hires a contractor to render painting, carpentry, electrical or plumbing services to the entire condominium complex, the services are taxable in the same proportion as the number of leased units that bears to the total number of units in the complex.

Repairs or maintenance services performed on units, such as furnaces, heat pumps, water heaters and air conditioners are subject to sales tax regardless of whether the units are situated in owner-occupied condominium units or rental condominium units.

LEGAL DIVISION

February 1, 1990