Q. Is the application of agricultural chemicals to land or crops on the farm (commercial agriculture) or to food producing animals a taxable application service?
A. No, the agricultural chemicals are exempt in this situation. See Sales and Use Tax Regulations 1-061 and 1-063.
Q. I install a built-in dishwasher for my customer. Is the installation charge subject to sales tax as a taxable installation service?
A. Since a built-in dishwasher is considered annexed to real estate, normal installation labor rules do not apply. The person "installing" the dishwasher is a contractor.
If the diswasher is installed in a residential dwelling (single family home or duplex), the contractor will collect or pay sales tax on the dishwasher based on the contractor option he/she has chosen. No sales tax is charged on the labor to install the dishwasher, provided such charge is separately stated on the customer's bill.
If the dishwasher is installed in any building other than a residential dwelling, the contractor will charge sales tax on the dishwasher and on any contractor labor charge according to the contractor option he/she has chosen.