Texas Comptroller Determines Sales and Use Taxability of Taxpayer’s Residential HVAC Services

The Texas Comptroller of Public Accounts April 22 determined in a letter ruling the sales and use taxability of Taxpayer’s services related to heating and ventilation air conditioning (HVAC) systems and water heaters. Taxpayer installed residential HVAC systems and water heaters. Taxpayer provided the equipment with seasonal maintenance and emergency repair for a single monthly payment. Charges for labor and equipment materials weren’t separated. Taxpayer requested guidance on the taxability of the monthly payments it charged for the installation, maintenance, repairs, and distributor’s warranty. The comptroller determined: 1) Taxpayer’s agreement established that the installed equipment remained tangible personal property and ...