California Sales Tax on Optional Maintenance Contracts California: Sales Tax Handbook

California:

Are Optional Maintenance Contracts subject to sales tax?

While California's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of optional maintenance contracts in California, including parts purchased for use in performing service under optional maintenance contracts. To learn more, see a full list of taxable and tax-exempt items in California.


General Optional Maintenance Contracts
EXEMPT
Sales of are exempt from the sales tax in California.

Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts
TAXABLE
Sales of parts purchased for use in performing service under optional maintenance contracts are subject to sales tax in California.



  Back to California Sales Tax Handbook Top
** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/california/sales-tax-taxability/optional-maintenance-contracts