ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-2-.79. Repairs of Electric Motors and Electric Generators.
(1) Parts and attachments furnished by repairmen in reconditioning or
repairing electric motors and electric generators are sold by the repairmen
to the owners of the motors and generators. The repairman's sales of repair
parts, such as ball bearings, brushes and wire used in rewinding, are subject
to the sales tax. These parts and attachments are purchased at wholesale
tax free by the repairman.
(2) Materials which lose their identity because of use by a repairman
in repairing or reconditioning electric motors and electric generators,
such as solder, babbitt, varnish, and insulation paste are subject to sales
or use tax when purchased by the repairman. The tax shall be paid to the
repairman's supplier or direct to the Department of Revenue as the circumstances
require. Provided, however, where a repairman is engaged in the business
of selling such repair materials, as well as using them, he may purchase
at wholesale all repair materials which he both sells and uses in making
repairs and pay direct to the Department of Revenue as sales tax the amount
due on both sales and withdrawals from stock for use.
(3) The repairman's charges for labor used in installing parts and materials
are not to be included in the measure of tax to be collected from his customers
and paid to this state where such charges for labor are separately invoiced
by the repairman to his customers and where the books and records of the
repairman are kept in such a manner as to clearly reflect receipts from
making installations and rendering services.
(4) In those instances where repair parts are used in repairing or rebuilding
a motor or generator used in such a way that it would be taxed at the special
machine rate, such repair parts are also taxed at the special rate. (Section
40-23-2(1)) (Readopted through APA effective October 1, 1982)
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