Repairs To Tangible Personal Property

Section 63-3612, 63-3613, 63-3622, Idaho Code 01. In General. Repairs normally require both material and labor. Persons engaged in the business of repairing, renovating, or altering tangible personal property owned by others are mandatory to collect sales tax on the parts and materials used in the repair or renovation of the property. (7-1-26) 02. Separate Statement of Parts and Materials. The sales price of parts and materials need to be separately stated. Sales tax is charged on parts and materials. Separately stated repair labor isn’t taxable. If parts and materials are not stated separately from repair labor, the total amount for parts, materials, and repair labor is taxable. (7-1-26) 03. Repairs Covered by Insurance Benefits. Repairs, the costs of which are covered by insurance benefits, are treated the same as otherwise described in this rule. Sales tax is to be collected on the parts and materials. Separately stated repair labor isn’t taxable. (7-1-26) 04. Incidental Materials. When a small amount of materials is used to perform a repair, the value of the materials may be insignificant to the entire repair cost. Materials are incidental if the value is insignificant, doesn’t have a reasonable retail price, and are not listed separately on the customer invoice. The repair shop pays tax when purchasing incidental materials. (7-1-26) 05. Shop Supplies. Shop supplies are taxable when purchased by the dealer/repair shop and aren’t included as part of the taxable amount billed to the customer. Shop supplies include spray bottles, buffer pads, towels, masking tape, solvents, sandpaper, and other items that have no specific identifiable value billed to the customer, and don’t become part of the item being repaired. (7-1-26) 06. Repairs Versus Fabrications. Repairs to tangible personal property are not to be confused with fabrications of tangible personal property. Fabricated tangible personal property is subject to sales tax on the entire IDAHO ADMINISTRATIVE CODE IDAPA 35.01.02 State Tax Commission Idaho Sales & Use Tax Administrative Rules Section 063 Page 37 price whether the parts, materials, and labor are stated separately. See Section 029. (7-1-26) 07. Examples. Available at Sales and Use Tax Examples. (7-1-26)