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I install a built-in dishwasher for my customer. Is the installation charge subject to sales tax as taxable installation labor?

April 26, 2017built-in charge customer dishwasher install installation Subject taxable

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I install a built-in dishwasher for my customer. Is the installation charge subject to sales tax as taxable installation labor?

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No. Since a built-in dishwasher is annexed to real estate, normal installation labor rules do not apply. The person “installing” the dishwasher is a contractor. If the dishwasher is installed by an Option 1 contractor, the total amount charged for the dishwasher and contractor labor charge to install it is taxable unless the labor charge is separately stated. Separately stated labor charges are not taxable. If the dishwasher is installed by an Option 2 or Option 3 contractor, the total amount charged for the dishwasher and the labor charge are not taxable. The Option 2 or Option 3 contractor must pay or remit tax on its purchase of the unit.