Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-05 - Sales and Use Tax Division
Chapter 1320-05-01 - State Sales and Use Tax Rules
Section 1320-05-01-.54 - REPAIR SERVICES

(1) All charges for repair services and repairs of any kind of tangible personal property, such as automobiles, clothing, watches and jewelry, office equipment, machinery, tires, etc., including all parts and/or labor, are subject to the Sales Tax. This includes occasions when there may be no new parts involved in the transaction, and occasions when a customer may furnish any or all of the parts necessary for the repair work. Any factor entering into the consideration charged for repair services and repairs such as "service call", minimum charge, hourly or flat rates, mileage, etc., shall be subject to the Sales Tax.

(2) For the purposes of this rule, "repair services" and "repairs" of tangible personal property shall mean and include any one or all of the following for a user and consumer; work done to preserve or restore to or near the original condition made necessary by wear, normal use, wastage, injury, decay, partial destruction, or dilapidation; mending, correction, or adjustment made for any defect or defective portion; alterations; refinishing; any cleaning that is a necessary part of any repair work; "service calls" where any repair work is done or contemplated; and changes in the size, shape, or content. Repair services and repairs of tangible personal property shall not include any maintenance or other work on buildings, or electrical wiring, plumbing, or fixtures attached to and a part of any real property; installation of tangible personal property not incidental to a sale or repair thereof; service calls where no repair is contemplated; work done on one's own property insofar as labor is concerned, either personally, or by one's own employees, (but not to include parts, supplies, etc., all of which are taxable); or engraving not incidental to a sale of tangible personal property. In the event any services and repairs are not taxable, the charges therefor must be billed separately to the customer and indicated as such on the books and records of the dealer.

(3) Dealers performing repair services and repairs of tangible personal property may purchase repair parts, repair services, and containers, labels, etc., for packaging work repaired, without tax, on a certificate of resale. All equipment, energy fuel, and other supplies and taxable services are subject to the Sales or Use Tax, and the tax due thereon must be paid to the vendor.