Okla. Admin. Code § 710:65-19-371

Current through Vol. 42, No. 4, November 1, 2024

Section 710:65-19-371 - Manufacturer's original product warranty

(a)Definitions. "Manufacturer's original product warranty" means those warranties which are provided as a condition of all sales of a product and which constitute an indistinguishable part of the product sold. For purposes of this section, a "Manufacturer's original product warranty" , is included within the basis for determining sales tax, without regard for whether the charges for the warranty and for the product are separately stated.

(b)Sale of a product covered by a manufacturer's warranty. The entire gross proceeds of a product covered by a manufacturer's original product warranty is subject to sales tax, including any separately-stated charges for the manufacturer's original product warranty, if the sale is not otherwise exempt.

(c)Parts used by the manufacturer. Parts used by the manufacturer to perform original manufacturers warranty repair or replacement, are not taxable to the manufacturer. If the parts are included in the terms of the original warranty, and are not sold/billed to the customer, sales tax will not be due upon use by the manufacturer to effect repair or replacement. Parts billed/sold to the customer are subject to sales tax.

(d)Work done by dealers. If the manufacturer has agreements with dealers or the representatives to perform original manufacturers' warranty repairs, the parts used to perform the repairs, if not sold/billed to the customer, are considered to be sold to the manufacturer for re-sale or manufacturing.

Okla. Admin. Code § 710:65-19-371

Added at 11 Ok Reg 3521, eff 6-26-94; Amended at 14 Ok Reg 2711, eff 6-26-97