| exempt qualifying components. Examples of acceptable documentation include purchase invoices, bid sheets, or schedules of values. See §3.357 of this title. (e) Sale and Installation. The sale and installation of components of tangible personal property on a qualifying project, as described in subsection (b) of this section, are exempt when the items retain their identity as tangible personal property. (f) Taxable services performed on exempt items. A person who performs repair, restoration, remodeling or maintenance services on exempt components of tangible personal property, which, after installation, retain their identity as tangible personal property, is not required to collect sales tax on that service if the customer provides a properly completed exemption certificate. (g) Maintenance on real property. Components of tangible personal property installed as part of maintenance on real property are exempt when the installation is performed on a clean energy project or an advanced clean energy project. Persons performing real property maintenance under separated contracts should refer to subsection (d)(1) of this section. Persons performing real property maintenance under lump-sum contracts should refer to subsection (d)(2) of this section. (h) Divergent use. A person who claims a valid exemption or refund on the purchase of a component of tangible personal property under the provisions of subsection (b) of this section, but who then uses the item in a taxable manner, is required to report and pay sales tax to the comptroller based on the fair market rental value of the component of tangible personal for the period of time that the item is used in a taxable manner. At any time, a purchaser may elect to pay sales tax on the purchase price of the item, but no credit is allowed for taxes that were previously paid based on fair market value. See §3.287 of this title (relating to Exemption Certificates). (i) Effective date. The provisions of this section are effective September 1, 2009. A purchaser who claims an exemption under this section must give the seller a properly completed exemption certificate. The sale, use, storage or consumption of such items prior to September 1, 2009, is taxable unless otherwise exempt. |
