The liner prevents leaks and, in new pipelines, prevents corrosion. The company asked about its tax responsibilities when installing the liner in a new pipeline. If the company installs the liner before the pipe is attached to real property, the total charge is taxable because the service is remodeling tangible personal property, a taxable service. If the company installs the liner in a new pipeline after the pipe has been attached to the realty, then the company is improving real property. The labor to attach the liner is new construction labor and not taxable.
Tax is due on separately stated charges for the liner.
If the liner is installed in an existing pipeline, the total charge will be taxable as remodeling non-residential real property. It's a Dirty Job A commercial waste water treatment company asked about its sales tax responsibilities. Water is transported and stored at the company's facilities. Oil and other contaminants are removed using an ultra-filter treatment process. The treated waste water is discharged into a municipal waste facility, and any recovered oil is sold to an oil recycling center.