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Last Updated: 8/16/2017

Definitions

Some of the items and services used to repair motor vehicles are taxable, and some are exempt from sales tax. The taxability of a given item may depend on its exact use, the kind of business providing it, and how parts, materials, and service are broken down on the invoice.

The following definitions apply to this industry.

Auto body repair and service

Fixing damaged motor vehicle structures such as frames, body panels, and trim pieces. Businesses that provide these services include:

  • Automotive dealers
  • Body shops
  • Independent installers
  • Paint shops

Mechanical repair and service

Fixing the mechanical systems of motor vehicles such as engines, transmissions, electrical, and braking systems. Businesses that provide these services include:

  • Automotive dealers
  • Garages
  • Independent installers
  • Service stations

Motor vehicle

A self-propelled vehicle that must be licensed for road use. Example include:

  • Cars, pickups, trucks, and vans
  • Motorcycles
  • Motor homes
  • Semi-tractors
  • Trailers

Repair labor

Auto body and automotive repair labor is not taxable when it is separately stated from repair parts on the invoice. Repair labor restores an item to its original condition so it can be used for its original purpose.

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