Water

(1) Sales of water, including any charges for standby or special fire protection, minimum bills, or any other charges where the use of water is contemplated, are subject to the Sales or Use Tax. STATE SALES AND USE TAX RULES CHAPTER 1320-05-01 (2) Charges for sewage disposal, amortization, tap fees, late payment and damages to facilities are not subject to the Sales or use Tax, provided some definite amount or percentage of the charges for water are indicated as such on the statement given to the customer, and the charges are segregated and maintained as such on the books and records of the dealer. Security deposits are not subject to the Sales or Use Tax. If these charges are not indicated as such on a statement given to a customer, and are not maintained as such on the books and records of the dealer, they are subject to the Sales or Use Tax. (3) Dealers giving allowances to customers for charges for water that has been metered, but which is lost because of leaky or open pipe, may claim credit for such allowances. (4) Statements for sales of water must indicate in some manner whether the customer is paying Sales or Use Tax. (5) Landlords who make any charges to tenants for water shall be deemed to be dealers, shall qualify with the Department for Sales Tax purposes, and report and pay applicable tax due on such sales to their tenants.