Calculation of tax imposed on retail sale of large appliances

1. In administering the provisions of this chapter, the Department shall calculate the amount of tax imposed on the retail sale of large appliances as follows: (a) If the large appliance is sold separately or with installation or replacement services, or any combination thereof, the sales tax must be applied to the retail sales price of the large appliance to the customer. The sales tax does not apply to charges for or associated with installation and replacement if those charges are stated separately on the sales receipt or in the contract of sale. (b) If the large appliance is sold as a constituent part of a contract for the construction or refurbishment of an improvement to real property or a mobile home, the sales tax must be paid by the contractor on the sales price of the large appliance to the contractor. 2. As used in this section: (a) “Contract for the construction or refurbishment of an improvement to real property” means a contract for erecting, constructing or affixing a structure or other improvement to real property or a mobile home, including the remodeling, altering or repairing of an improvement to real property or a mobile home. The term does not include the sale, delivery, installation or replacement of one or more large appliances not included in a contract for erecting, constructing or affixing a structure or other improvement to real property or a mobile home. (b) “Large appliance” includes, without limitation, a washing machine, dryer, range, stove, oven, dishwasher, refrigerator, freezer, ice maker and hot water dispenser. (c) “Replacement” means the removal of an old large appliance and the installation of a new large appliance.