What types of charges are included in a taxable motor vehicle towing service?
All charges which are part of, and essential to the performance of the towing service, are part of the taxable price of the service. Some examples of taxable charges associated with the provision of motor vehicle towing service include: • Charges for digging snow from around a vehicle before towing. • Trip charges, to the extent a taxable service is performed. • Hook-up charges. • Hourly charges, to the extent a taxable service is performed. • Charges to disconnect drivetrain before towing. • Dolly charges. • Charges for righting overturned vehicles. I transport vehicles by lifting them onto a flatbed, rather than towing them behind a tow truck. Are my services taxable? Yes. The statute applies tax to “the towing or conveyance of a wrecked, disabled, or illegally parked motor vehicle.” (Emphasis added.) I transport new motor vehicles to dealers. Is this a taxable service? No. This is merely a transportation charge. The vehicles being transported are not “wrecked, disabled, or illegally
