The Nebraska Department of Revenue recently mailed a notice to nearly 6,500 contractors, building and trade associations, and others involved in the construction industry, explaining the sales and use tax changes relating to contractor labor. Effective October 1, 2007, the following changes will be in effect: 1) contractor labor charges that are separately stated on the billing invoice will not be taxable, 2) contractor labor charges will not be taxable, and 3) the sale of warranties, guarantees, and service agreements that only cover the repair of buildings or fixtures such as hot water heaters, garbage disposals, and central heating and air conditioning units, will not be taxable. (Release, Nebraska Department of Revenue)