Documentation service fees are taxable and must be included in the total sales price upon which sales tax is calculated and collected. State-mandated charges such as registration fee, certificate of title fee and driver education tax are not taxable and must be separately identified and segregated on the invoice. Any taxes collected on state-mandated charges prior to receipt of this bulletin must, of course, be reported and remitted.
Any deductible amounts paid at the time of repair are subject to sales tax.
This treatment of extended warranties is consistent with the legislative determination that services for repairs or renovations to tangible personal property are taxable. To hold otherwise would allow repairs made under warranty, and thus without charge, to go untaxed.