42-5156. Tangible personal property provided
under a service contract or warranty; definition
A. The tax imposed by section 42-5155 shall be levied and collected at an amount
equal to five and six-tenths per cent of the cost of the tangible personal property
provided under the conditions of a warranty or service contract.
B. Every person storing, using or otherwise consuming in this state tangible
personal property provided under the conditions of a warranty or service contract is
liable for the tax. Such person's liability is not extinguished until the tax has been
paid to this state, except that a receipt from a retailer maintaining a place of business
in this state or from a retailer who is authorized by the department to collect the tax,
under such rules as it may prescribe, and who is for the purposes of this article
regarded as a retailer maintaining a place of business in this state, given to the
purchaser in accordance with the provisions of section 42-5161 is sufficient to relieve
the purchaser from further liability for the tax imposed upon the tangible personal
property to which the receipt refers.
C. For the purpose of this section, "cost" means the cost of the tangible personal
property to the provider of the warranty or contract.
|