When Is a Repair Taxable?
The repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of tangible personal property is a taxable service. The sales price (including charges for materials, labor, and any services necessary to complete the sale) of such services are subject to tax.
Exception: Unless, at the time of that repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance, the owner of the property may purchase the property being serviced exempt (sec. 77.52(2)(a)10., Wis. Stats.).
Exceptions
Tangible personal property installed in a commercial facility (any facility that is not residential is a commercial facility) which primarily (more than 50%) serves a business or process function, rather than a building function, retains its character as tangible personal property regardless of the extent that it is affixed to real property.
Although services to real property are not subject to tax, there are certain types of property that are treated as tangible personal property for purposes of repair or other service to that property. Repair and other services to these items are taxable, regardless of the extent that they are attached to or fastened to real property. A complete list of these "deemed items" can be found in Part 3.A of Wisconsin Department of Revenue Publication 207, Sales and Use Tax Information for Contractors.
