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

May 28, 2021, 5:00 a.m.

The Texas Comptroller of Public Accounts on April 22 stipulated in a letter deciding the sales and use taxability of the taxpayer’s services related to heating and ventilation, air conditioning (HVAC) systems, and water heaters. The taxpayer installed residential HVAC systems and water heaters. The taxpayer provided the equipment with seasonal maintenance and emergency repairs for a one-time monthly payment. Labor and equipment costs were not separated. The taxpayer asked for advice on the taxability of the monthly payments he charged for the distributor’s installation, maintenance, repairs, and warranty. The auditor determined: 1) In agreement with the taxpayer, the installed equipment was determined to be tangible personal property and …

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