A service company that repairs basement walls to seal cracks and prevent water damage is liable for New York sales tax. The company’s method of waterproofing basements is considered a taxable repair and therefore subject to sales tax. The company does not make any additions or alterations to basements; they only cover the cracks with a vinyl panel so leaks no long occur and then repair cracks with a clay-based material. However, if the company made alterations or installed a system, their work would be considered a capital improvement to real estate and would not be liable for sales tax. (TSB-A-08(37)S, New York Commissioner of Taxation and Finance, August 21, 2008)