Whenever I have my car serviced (tuneup, etc.), my bill includes parts, service, and labor, which are totaled. then the sales tax is added on. Why should the labor portion be taxed? Is this correct? E. K.
State laws differ widely in the application of sales taxes. Many states exempt food from sales taxes, for example. Most states do, however, charge sales tax on services, including such activities as tuning your car, repairing shoes, etc. Many professional services, such as dentist, accountant, architect, and attorney fees, are also exempt. If your garage is charging sales tax on the labor portion of your bill, the practice is probably legal.