HB 1682

For purposes of determining sales tax, present law defines a "s ales price "" as the amount subject to sales tax without any deduction for several types of costs, including labor or service cost s and i nstallation charges . This bill provides that l abor and service costs, including repair and installation labor charges, that are separately stated on an invoice or similar billing document given to the purchaser are not included in the ""sales price"". Additionally, this bill makes the following services untaxabl e for sales tax purposes:  The performing, for a consideration, of any repair services with respect to any kind of tangible personal property or computer software .  The installing of tangible personal property that remains tangible personal property after installation and the installing of computer software, where a charge is made for the installation, whether or not the installation is made as an incident to the sale of tangible personal property or computer software, and whether or not any tangible personal property or computer software is transferred in conjunction with the installation service . Present law provides that a tax is levied at the rate of the tax levied on the sale of tangible personal property at retail on the repairing of tangible personal property or computer software, the laundering or dry cleaning of tangible personal property, the installing of tangible personal property that remains tangible personal property after installation, and the installing of computer software, when such repair, cleaning, or installation occurs at a place of business outside this state and the serviced tangible personal property or computer software is delivered by the seller to the purchaser or the purchaser's designee within the physical limits of this state or to a carrier for delivery to a place inside the physical limits of this state for use or co nsumption in this state. This bill removes this provision given the changes described above."