H97 - 2015 Appropriations Act, Sec. 32.18: Sales Tax Base Expansion (SL 2015-241)

Overview: Sec. 32.18 of S.L. 2015-241, as amended by Sec. 10.1 of S.L. 2015-241, expands the sales tax base to include repair, maintenance, and installation of tangible personal property, effective March 1, 2016, as follows:

• Repeals the sales and use tax exemption applicable to installation charges when those charges are stated separately on the billing document.
• Imposes sales and use tax on the gross receipts derived from repair, maintenance, and installation services.
• Amends the definition of a "service contract" to include a contract where the obligor agrees to maintain or repair tangible personal property, regardless of whether the property is part of or becomes affixed to real property.