Hi all,
What does this phrase from the NJ sales tax guidance mean?
"The purchase and installation of an air conditioner is taxable when the unit is placed into an existing space or metal casing that is part of a structure. An air conditioner that can be removed from its casing by the owner is not a capital improvement and remains tangible personal property."
When is an central air conditioner not put into an 'existing space'? Every AC unit, brand new or a replacement is put into an existing space, not into outer space or something.
So if we replaced a 20 year old unit with new compressor, blower, condenser - are we supposed to pay sales tax?