COVID-19 Penalty Relief: You may ask us to cancel or reduce filing or payment penalties if you have a reasonable cause or are negatively affected by the COVID-19 pandemic. For more information, updates, and resources, see Our Response to COVID-19.
Optional maintenance contracts provide prepaid coverage for things like scheduled oil changes and tire rotations. These contracts are taxable if they include any taxable items, unless the cost of those items is insignificant (less than 10 percent of the total price of the contract).
Note: The sales tax is due when the contract is sold, not when the maintenance is performed.