schoolies,
The answer is YES, you DO need to collect sales tax on repairs to
computer equipment and networks.
I found the answer in Louisiana's Dept of Revenue web site. Here's the
relavent info from the FAQ page. I reformatted it so it's easier to
read.
Note under "d." , "#7"
Sales Tax
http://www.rev.state.la.us/sections/faq/default.asp#sales
EXCERPT:
..."To what transactions is sales tax applied?
The state general sales and use tax is levied on the following transactions:
a. The sale of tangible personal property in this state.
b. The use, consumption, distribution, or storage for use or
consumption in this state of any tangible personal property.
c. The lease or rental within this state of any item or article of
tangible personal property.
d. The sales of certain services as defined in Revised Statute
47:301(14). Those services are:
1) the furnishing of sleeping rooms by hotels;
2) the sale of admissions to places of amusement and to athletic and
recreational events, and the furnishing of privileges of access to
amusement, entertainment, athletic, or recreational facilities;
3) the furnishing of storage or parking privileges by auto hotels and
parking lots;
4) the furnishing of printing and over printing;
5) the furnishing of laundry, cleaning, pressing, and dyeing services;
6) the furnishing of cold storage space and the preparation of
property for such storage;
7) the furnishing of repairs to tangible personal property; and
8) the furnishing of intrastate telecommunications services.
All sales, use, consumption, distribution, storage for use or
consumption, leases, and rentals of tangible personal property are
taxable, unless an exemption or exclusion is provided by law for a
particular transaction. In the case of service transactions, only the
particular transactions enumerated in the law are taxable..."
AND, below that portion at the link above is this:
..."Do I have to collect sales tax on charges for labor?
Under certain circumstances, labor charges are taxable. Labor to
fabricate or repair movable property is taxable. Labor charges to
construct or repair immovable, or real, property are not subject to
sales tax..."
Computer equipment --including networks, are movable, therefore
taxable. If you were to repair say, a gouge in a hardwood floor, that
is ATTACHED to the building, the answer would be no. Repairing a lamp
is taxable, but repairing lighting fixtures that are part of the
building are not.
You can also look here:
Sales and Use Tax
http://www.rev.state.la.us/sections/business/sales.asp#sales
Basis of tax
The state general sales tax is due on the sales price [R.S.
47:301(13)] for transactions subject to the sales tax and on the cost
price [R.S. 47:301(3)] for transactions subject to use tax. The
taxable base includes the total amount for which tangible personal
property is sold, including any services rendered by the seller in
connection with the sale, the gross amount charged for the lease or
rental of tangible personal property, and the gross amount charged for
taxable services.
The state general sales and use tax is levied on the following transactions:
1. The sale of tangible personal property at retail in Louisiana;
2. The use, consumption, distribution, or storage for use or
consumption in Louisiana of any tangible personal property;
3. The lease or rental within Louisiana of any item or article of
tangible personal property; and,
4. The sale of services as defined in the statutes under R.S.
47:301(14), which include the following:
1. the furnishing of rooms by hotels;
2. the sale of admissions to places of amusement and to
athletic and recreational events,
3. the furnishing of privileges of access to amusement,
entertainment, athletic, or recreational facilities;
4. the furnishing of storage or parking privileges by auto
hotels and parking lots;
5. the furnishing of printing and overprinting;
6. the furnishing of laundry, cleaning, pressing, and dyeing services;
7. the furnishing of cold-storage space and the preparation
of property for such storage;
8. the furnishing of repairs to tangible personal property; and
9. the furnishing of telecommunications services.
Another way to look at it is this --if the repair is made to something
that a business owner --were he to move his business, would take with
him, then it is tangible personal property and thus taxable.
If the owner of the business owns the property, it makes no
difference, if he were to sell the building and move his business,
would the repaired object go WITH HIM, or would it stay?
I hope this answer fully answers your question. If not, please ask for
a clarification and I will be happy to assist you furthar.
~~Cynthia
Search terms used at Google:
Louisiana "sales tax"
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