Should installation charges be considered when determining whether the total sales price of an air conditioner or refrigerator falls under the price cap?
• For ENERGY STAR-qualified window air conditioners and refrigerators that will not be “built-in”, the installation charge, like the delivery charge, is considered part of the sales price. If the total sales price, including the charge for installation, exceeds the price cap, the entire charge — including delivery and installation — is taxable. If the total sales price is less than the applicable cap, the installation charge is exempt, even if the installation is performed after the exemption period and/or the installation charge is separately stated. • Charges for installing central air conditioners and “built-in” refrigerators though are not considered part of the sales price of the appliances and do not affect the item’s eligibility for the exemption. Central air conditioning units and built-in refrigerators are considered improvements to realty and the taxability of the installation charges is determined by the type of contract, lump sum or separated, and the type of property, resi
