The Indiana Department of Revenue has issued a ruling stating that repair service companies must collect and remit sales tax on the monthly or annual fees it charges customers under their real estate improvement repair services contracts for a number of items. The included items are furnaces, boilers, water heaters, heat pumps, central air conditioning units, inside water lines, inside electric lines, and inside gas lines. Repair service companies are not required to remit sales or use tax on the tangible personal property that is used to repair any of the listed items under such contracts. Optional extended warranty or maintenance agreements that contain the right to have property supplied in the event that it’s needed are subject to sales tax if there is a reasonable expectation that tangible personal property will be provided. The supplier of the parts or property is not liable for use tax on the items because the supplier is using them to fulfill the service called for by the repair service contract. (Revenue Ruling No. 2010-09 ST, Indiana Department of Revenue, January 14, 2011)