Miscellaneous and Shop Materials

You must collect tax on charges for "miscellaneous materials" such as gaskets, which are incorporated into repaired property if you state the charge for these miscellaneous materials separately.

You do not collect tax on charges for "shop materials" such as sandpaper, drill bits, soap, rags and masking tape, used in making repairs but not incorporated in the repaired property.

If a miscellaneous or shop materials charge includes both materials consumed in making repairs and those that are incorporated in the repaired item, the entire amount of the charge is taxable.