Were labor-only sublet recalibration charges taxable on a parts-inclusive auto repair invoice under Florida TAA 25A-007?

Plain-English summary

An auto body shop subcontracted rear blind-spot-monitor and park-assist-sensor recalibration because it could not perform that work in house. The subcontractor billed the shop without sales tax.

When the shop billed its customer, the larger repair invoice included parts, labor, paint material, and the subcontracted calibration charge.

Because the repair included taxable parts, the entire sales price was taxable. That sales price included the labor-only sublet recalibration charge.

What this means for you

Separately describing subcontracted labor did not remove it from the taxable sales price of a repair transaction that included parts.

Common questions

Were the recalibration services labor-only? Yes.

Were they taxable on this invoice? Yes.

Why? The larger auto body repair included taxable parts, making the entire sales price taxable.

Citations and references

• Fla. Stat. §§ 212.02 and 212.05 and Fla. Admin. Code r. 12A-1.006, as cited in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 25A-007

Original ruling text

Florida Department of Revenue
Office of Technical Assistance

5050 West Tennessee Street Tallahassee FL 32399

Jim Zingale
Executive Director

floridarevenue.com

QUESTION: Should labor-only sublet charges be taxed when such charges are billed as part of a
larger auto body repair invoice that also includes taxable parts?
ANSWER: Yes, the labor-only sublet charges should be taxed when such charges are billed as
part of a larger auto body repair invoice that also includes taxable parts. The entire “sales price,”
which in this case includes sublet labor charges, for an auto body repair is subject to tax when the
body repair includes parts.
September 26, 2025

Re:

Technical Assistance Advisement – TAA #: 25A-007
(“Taxpayer”)
Sales and Use Tax – Motor Vehicle Repairs
Sections 212.02 and 212.05, Florida Statutes - (“F.S.”)
Rules 12A-1.006, Florida Administrative Code - (“F.A.C.”)
BP #:

Dear
This is in response to your letter dated,
, requesting this Department’s issuance of a
Technical Assistance Advisement (“TAA”) pursuant to Section(s.) 213.22, F.S., and Rule Chapter
12-11 F.A.C, Florida Administrative Code, regarding the matter discussed below. Your request
has been carefully examined, and the Department finds it to be in compliance with the requisite
criteria set forth in Chapter 12-11, F.A.C. This response to your request constitutes a TAA and is
issued to you under the authority of s. 213.22, F.S.
Requested Advisement
Should labor-only sublet charges be taxed when they are billed as part of a larger auto body repair
invoice that also includes taxable parts?

Technical Assistance Advisement
September 26, 2025
Page 2

Facts
Taxpayer is an auto body repair shop in
. Taxpayer recently repaired a motor
vehicle. Taxpayer was able to provide the labor and materials necessary for most of the repair
work; however, the motor vehicle also needed its rear blind spot monitor and park assist sensors
recalibrated. Because the recalibration services are not something Taxpayer was equipped to
handle in-house, Taxpayer outsourced the calibration services to a company called
(“Mobile”). When Mobile billed Taxpayer for their services, Mobile did not charge sales
tax on the invoice. When Taxpayer billed its customer for the total repair of their vehicle, Taxpayer
included the calibration services (aka sublet charges) from Mobile as a taxable line item on the
repair invoice.
The repair invoice Taxpayer provided for review under this advisement reflects that Taxpayer’s
customer was billed for the following: parts, labor, material (paint), miscellaneous (sublet
charges).
One of Taxpayer’s insurance partners recently took issue with Taxpayer charging tax on the total
invoice amount for the motor vehicle repair. The insurance company believes that the calibration
services should not be taxed since such charges are labor-only charges. The insurance company
has requested that the calibration line items be “un-taxed” when they are billed.
Taxpayer’s Position
It is Taxpayer’s position that the “sublet recalibration” charges should be taxed since those charges
are being billed as part of a larger repair invoice that also includes tangible personal property (auto
parts). Taxpayer states that its position is supported by the Department’s Publication GT-800010,
Sales and Use Tax – Repairs to Tangible Personal Property, which states “when a repairer supplies
any parts or materials, the total amount the repairer charges its customer for repairing the tangible
personal property is taxable.” Taxpayer further asserts that this same publication also states that
“repairs to tangible personal property paid for by an insurance company in settlement of a claim
arising under the owner’s insurance policy are taxable.”
Law and Discussion
Unless a specific exemption applies property1, ss. 212.05, and 212.06, F.S., provide it is the
legislative intent that every person is exercising a taxable privilege that engages in the business of
1

The Department must point out that while taxing statutes are strictly construed against the taxing authority, statutes
that grant an exemption are strictly construed against the taxpayer. See Asphalt Pavers v. Dept. of Revenue, 584 So.2d
55 (Fla. 1st DCA 1991), at 57 (citing the rule that exemptions from tax are strictly construed against the taxpayer,
with any ambiguity resolved in favor of the administrative agency); State ex rel. Szabo Food Services Inc. v.
Dickinson, 286 So.2d 529 (Fla. 1973) (“Exemptions to taxing statutes are special favors granted by the Legislature
and are to be strictly construed against the taxpayer.”). See also, United States Gypsum Co. v. Green, 110 So.2d 409
(Fla. 1959) (also stating that exemptions from tax are strictly construed against the taxpayer) and Wanda Marine Corp.
v. Dep’t of Revenue, 305 So.2d 65, 69 (Fla. 1st DCA 1975).

Technical Assistance Advisement
September 26, 2025
Page 3

repairing tangible personal property2 in this state. For exercising such a privilege, a tax is levied
on each taxable transaction or incident. The tax is due and payable at the rate of 6 percent, plus
any applicable surtaxes imposed under s. 212.055, F.S., on the sales price3 charged to repair
tangible personal property in this state.
Rule 12A-1.006(1)(a), F.A.C., provides that when parts are furnished by the repairer, the entire
charge for adjusting, applying, installing, maintaining, remodeling, or repairing tangible personal
property (e.g., motor vehicle) is taxable.
Conclusion
Yes, the labor-only sublet charges should be taxed when such charges are billed as part of a larger
auto body repair invoice that also includes taxable parts. The entire “sales price,” which in this
case includes sublet labor charges, for an auto body repair is subject to tax when the body repair
includes parts.
This response constitutes a TAA under s. 213.22, F.S., which is binding on the Department only
under the facts and circumstances described in the request for this advice, as specified in s. 213.22,
F.S. Our response is predicated on those facts and the specific situation summarized above. You
are advised that subsequent statutory or administrative rule changes, or judicial interpretations of
the statutes or rules, upon which this advice is based, may subject similar future transactions to a
different treatment than expressed in this response.
You are further advised that this response, your request and related backup documents are public
records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions of
s. 213.22, F.S. Confidential information must be deleted before public disclosure. In an effort to
protect confidentiality, we request you provide the undersigned with an edited copy of your request
for TAA, the backup material and this response, deleting names, addresses and any other details
which might lead to identification of the Taxpayer. Your response should be received by the
Department within ten (10) days of the date of this letter.

2

Tangible personal property means and includes personal property which may be seen, weighed, measured, or touched
or is in any manner perceptible to the senses. See s. 212.02(19), F.S.
3
Section 212.02(16), F.S., defines the term, “sales price,” as the total amount paid for tangible personal property,
including any services that are a part of the sale . . . without any deduction therefrom on account of . . . the cost of
labor or service cost. . . or any other expense whatsoever. . . . “Sales price” also includes the consideration for a
transaction which requires both labor and material to alter, remodel, maintain, adjust, or repair tangible personal
property.

Technical Assistance Advisement
September 26, 2025
Page 4

If you have any further questions with regard to this matter and wish to discuss them, you may
contact me directly at (850)717-6363.

Sincerely,

Leigh L. Ceci
Leigh L. Ceci, MAcc
Tax Law Specialist
Office of Technical Assistance (850)717-6363

Record ID: 7001491975

Technical Assistance Advisement
September 26, 2025
Page 5

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