In a recent letter ruling, it was explained that contract labor charges for repairs, maintenance, and remodeling of apartment complex common areas are not subject to sales and use taxes, however, materials used on the projects are taxable. The contractor can only collect the taxes due on the materials if the contractor has an itemized contract separating the labor from the materials. If the contractor has a combined contract, however, the contractor must pay the taxes on all materials without charging the customer. (Letter No. 200711067L, Texas Comptroller of Public Accounts, November 12, 2007, received April 2008)