WARRANTIES

When a dealer makes a repair under an existing factory warranty, the parts furnished for the repair are to be considered included in the original sales price and not taxed.

When a dealer makes a repair under an optional service warranty, the parts furnished for the repair are to be taxed. When the customer is required to pay a portion of the parts, this amount is taxed.

When a dealer makes a sale involving an optional service warranty, that portion for the warranty is not subject to tax.

When a dealer makes a sale involving the transfer of an existing service warranty, that portion for the warranty is not subject to tax.