Labor to add or install something new or different to an off-road vehicle is taxable. The parts are also taxable. Examples include:

• Custom lettering on watercraft
• Installing platforms or GPS systems
• Adding ATV wheel spacers, hunting accessories, fish finders, or sonar

Repair or maintenance labor is not taxable when stated separately from other taxable charges on the bill.

Parts and other materials used to provide the repair or maintenance are taxable to the customer.  They are not taxable if covered by a manufacturer’s warranty or recall. See the Maintenance Contracts and Warranties.

If you subcontract with another business for repair work or services:

• Do not pay sales or use tax on your purchase.
• Give the subcontractor a completed Form ST3, Certificate of Exemption. Specify the resale exemption.
• You must charge sales tax to your customer for any taxable labor, parts, or materials.