FET on parts and accessories on used customer-owned chassis

August 9, 2011
Rose-Michele Nardi
Weiner Brodsky Sidman Kider PC
When we install a new taxable body on a customer-owned chassis, we sometimes also install one or more chassis parts or accessories. The customer-owned chassis are more than a year old and were taxable when new. We collect excise tax on the new bodies we sell at retail, but do not collect excise tax on our installation of the chassis parts or accessories. Is this correct?
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