Effective October 1, 2022, a new public law (P.L. 2022, c. 97) allows sign installers to purchase signs and materials for use in sign fabrication and installation, for resale. A fully completed resale certificate should be issued by the sign installer to the seller to document the exemption. The sign installer must charge Sales Tax to the customer on the sale of all signs.
Beginning October 1, 2022, the new law excludes the installation of signs from the existing capital improvement Sales Tax exemption. Thus, the sign installer must charge Sales Tax to the customer on the installation of all signs.
Labor to install signs, which are not permanently affixed to real property, continues to be subject to tax. Thus, the installation of all signs is now subject to tax.
Repair and Maintenance Services
The Sales and Use Tax Act currently imposes tax on charges for maintaining, servicing, and repairing real property and tangible personal property. The taxability of repair and maintenance services performed by sign installers has not changed; these services remain subject to tax.