An example of service work is the labor involved in changing the oil on a vehicle or rotating the tires.
Service labor-work performed for maintenance or repairs-is non-taxable. Knowing what types of labor are subject to tax can help a business avoid complications in the event of a sales tax audit or review of records by other state agencies. While most labor for repairs and service is non-taxable, there are some exceptions.
Business and Professions Code section 9884.8 requires that automotive repair dealers list parts and labor separately on automotive repair invoices. Reporting sales tax is a routine part of doing business in California. Taxable and Non-Taxable Labor for Auto Repairs and Service